US Inflation Concerns Grow as Producer Prices Rise in October

U.S. producer prices rose in October, driven by higher service costs, indicating a slowdown in disinflation. Despite this, the Federal Reserve is still expected to cut interest rates in December, though the overall rate-cutting cycle may be less aggressive due to resilient economic activity and persistent inflation. The producer price index increased by 0.2% in October, with notable rises in portfolio management fees and airline fares, while food and gasoline prices fell.