How to interpret the US October PPI data? The positive aspect is that the overall figure was slightly lower than expected, with the monthly growth rate clearly declining from the September high. The monthly data was relatively soft (lower than expected + energy price decline), representing a normalization from the extreme highs of September. However, the year-on-year growth of 6.5%, merchandise price growth of approximately 10.2%, and core PPI growth of 0.5% month-on-month indicate that the decline in inflation is not smooth, and stickiness remains. The data is not a signal of "re-acceleration," but it hasn't clearly cooled down either. Pipeline pressure (high year-on-year growth in intermediate demand) + core stickiness remain. Of course, in the short term, market sentiment is very poor. The fact that the PPI data wasn't worse allows the market to breathe a little easier. This post is sponsored by @bitget_zh, "Bitget Buy US Stocks: Instant Entry, Smooth Trading"