Price increases speed back up: Following a 2.4% over-the-year increase in September, consumer prices rose 0.2% over the month and 2.6% over the year in October. Meanwhile, wholesale prices increased 0.2% over the month and 2.4% over the year in October, after rising 1.9% over the year in September.
Why it matters: After cuts in the Federal Open Market Committee’s interest rate target at its September and November meetings, the prospect of another 25-basis-point cut at the meeting next month is looking slimmer.
Boeing strike keeps October industrial production suppressed: Industrial production fell 0.3% in October, and the decline was influenced significantly by the strike of Boeing workers, with a smaller impact from the lingering effects of two hurricanes. Manufacturing output decreased 0.5%, with aerospace and miscellaneous transportation equipment dropping a dramatic 5.8%.
What it means: While a deal was made that ended the strike in early November, it is expected that it will take months for production to return to normal levels, which will keep industrial production suppressed in the reports ahead.
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