The Producer Price Index for dropped 0.6 for finished goods and rose 0.2 percent for intermediate goods, according to the Bureau of Labor Statistics . Here's the monthly percent changes in the Producer Price Index for Finished Goods, seasonally adjusted: And here's the monthly percent changes in the Producer Price Index for Intermediate Goods, seasonally adjusted: You can read the full report here . Combine the PPI data with the Consumer Price Index data released earlier --the CPI rose 0.2 percent in September, and has fallen 1.3 percent over the last 12 months on a seasonally adjusted basis, according to the BLS--and it doesn't look like inflation is an issue at this point. James Hamilton suggests that we take a look at the price data in the context of high unemployment. And he concludes "the Federal Reserve is correct in thinking that high levels of unemployment are a factor that will put downward pressure on inflation over the next two years." He breaks down the relationship between unemployment and inflation at Econbrowser . Take a look here .