U.S. producer prices up 0.2% month-on-month in October...in line with the market outlook

The U.S. Labor Department says its producer price index rose 0.2% month-on-month in October.

The gains are in line with expert forecasts compiled by Dow Jones, which compared with a year ago was 2.4%.

Excluding energy and food, the "root producer price index" rose 0.3% from the previous month and 3.5% from a year ago, respectively.

The U.S. Producer Price Index measures the price changes that producers in the U.S. receive when selling goods and services, and is used as an important indicator for predicting inflation or deflation.

It is used by businesses and policymakers to assess and take action on economic conditions, especially since rising or falling prices at the producer level can affect consumer prices over time.