According to the Labor Department, wholesale prices have increased by 8.6% over a previous year in October. This is their highest annual rate since records began almost 11 years ago.

Inflation pressures continue to press the U.S. economy, according to the government’s producer prices index. It is used by the government as an indicator of finial demand for goods-producers and serves as a gauge. The pace of the monthly increase was much faster than that which occurred in September with a 0.5% increase.

The index rose 0.4% month to month after excluding food, energy, and trade prices. This is slightly less than 0.5%, however, it was still higher than September’s 0.1% increase. The core producer price index increased 6.2% over the past year. These records date back to November 2010, and are year-over-year.

Inflation was driven again by an increased demand for goods and services, with more than 60% of all index growth being caused by price increases in final demand goods. The price of goods rose by 1.2%, with a mere 0.2% rise in services. Construction prices rose 6.6%.

Soaring gasoline prices accounted for one-third of all the rise in prices. Prices rose 6.7%. Prices for beef and veal were on the opposite side of the coin, with a combined decline of 10.3%. Inflation’s key driver, residential electric energy, was affected by the decline in light motor truck prices.

More than 80% of price rises in final demand services came from autos, parts and other components, which increased 8.9%.

Final-demand is an indicator of how much goods are sold for capital investment, personal consumption and government as well as exporting.

This week’s key inflation readings include the PPI report. On Wednesday, the Labor Department will publish the October consumer price index. It is anticipated to show an increase of 0.6% for all goods. This would translate into 5.9% annual growth.

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