Producer Price Index data out Tuesday shows another sign that inflation is cooling. PPI for final demand increased 8.0% in October from a year ago. The increase came in below expectations and is lower than the year-over-year increase in September.
Thursday’s GDP report shows the U.S. economy grew at an annual rate of 2.6% in July, August and September, after shrinking in the first half of the year.
Some hints that U.S. price pressures are beginning to ease even as overall inflation remains high could encourage Federal Reserve policymakers to opt for smaller interest rate increases after they deliver a fourth straight supersized hike next week.