The Producer Price Index (PPI), which measures inflation on the wholesale level, fell by 0.5% in October, marking the largest monthly drop since April 2020. On an annual basis, PPI declined from 2.2% all the way down to 1.3%. Core PPI, which also strips out volatile food and energy prices, was flat for the month with the year-over-year reading down from 2.7% to 2.4%. All these numbers were below estimates. What’s the bottom line? This latest PPI report is another encouraging sign that inflation is easing, with October’s 1.3% year-over-year reading a sharp drop from last year’s 11.7% peak. Plus, PPI tends to lead the way for CPI, which suggests further good progress moving forward.