October PPI: -2.8%

October PPI — down 2.8% was the biggest month over month decline since the date series began in 1947.

The -2.8% was far below consensus of down 1.9%; the core rose 0.4% (more than consensus 0.3%).

The year over year gain is now 5.2% — and that’s the lowest since September 2007; Core year over year gain of 4.4% is the most since 1989.

Biggest contributor? A 24.9% decline in gasoline prices.

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Monthly % Change

Chart courtesy Barrons Econoday

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Month-over-Month Change

chart via Econompic

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Source:
Producer Price Indexes – October 2008
BLS, NOVEMBER 18, 2008
http://www.bls.gov/ppi

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