The zigzag of wholesale inflation rose again in October, even though it considerably decelerated following a spike in September.

The producer price index (PPI) increased 0.3% last month, the Bureau of Labor Statistics reported Friday, down from 1.4% in September, the largest such increase since 2022. The index for final demand goods ratcheted up by 0.5% last month while prices for final demand services increased 0.2%.

“Over 60% of the advance in October is attributable to prices for final demand goods less foods and energy, which moved up 0.5%,” said the BLS in its monthly report. The bureau cited strong gains in that measure of core inflation, which matched the same elevated rate as September.

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Economists surveyed by Dow Jones and Reuters had anticipated 0.4% growth across all categories, meaning October PPI came in slightly cooler than expected but continued to trend higher.

Year-over-year PPI growth still exceeded annual growth in September, rising 6.5% compared to 6.3% the previous month. That represents the largest yearly gain in the Labor Department’s index since late 2022.

Federal Reserve policymakers are weighing the prospect of raising interest rates in December following a quarter-point hike in September but no policy adjustment in October. Numerous inflation reports have landed since mid-summer showing inflation — which has remained above the Fed’s stated 2% target for nearly six years — continuing to move in the wrong direction.

The decision by the Federal Open Market Committee to leaves rates unchanged in late October ahead of early November midterm elections produced two formal dissents from officials who favored a quarter-point hike due to the prevailing trends in consumer prices.

The PPI, which measures the average change in the selling prices received by domestic producers for their goods and services, feeds into the Federal Reserve’s preferred inflation gauge, the personal consumption expenditures (PCE) price index. 

Reflecting September data, the latest PCE survey showed a 0.5% jump in that inflation measure, an acceleration from 0.3% growth in August, 0.1% growth in July and a decline of 0.1% in June.

The BLS reported Tuesday that the consumer price index (CPI) increased faster than economists had forecast in October, after rising at its fastest pace since April in September. Core CPI measures that strip out volatile food and energy prices have climbed 0.3% per month in October, September and August, compared to 0.2% growth in July and no change in June.

The steady acceleration in inflation over recent months has accompanied a broadening out in price pressures as businesses pass higher energy and import costs to consumers.