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.
Monthly % Change
Chart courtesy Barrons Econoday
chart via Econompic
Producer Price Indexes – October 2008
BLS, NOVEMBER 18, 2008