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The U.S. Commerce Department released the producer price index figures on Friday. The U.S. producer price index declined 0.4% in October, missing expectations for a 0.2% rise, after a 0.5% drop in September.
On a yearly basis, the producer price index decreased 1.6% in October, missing forecasts of a 1.2% decline, after a 1.1% fall in September. It was the largest decline since 2009.
A stronger U.S. dollar and weak global demand weigh on inflation.
Services prices were down 0.3% in October, while prices for goods declined 0.4%.
Food prices decreased by 0.8% in October, while energy prices were flat.
The producer price index excluding food and energy fell 0.3% in October, missing expectations for a 0.1% gain, after a 0.3% decrease in September.
On a yearly basis, the producer price index excluding food and energy climbed 0.1% in October, missing forecasts of a 0.5% increase, after a 0.8% rise in September.
These figures could mean that the Fed will not start raising its interest rate in December.
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