The Labor Department reported on Thursday the U.S. producer-price index (PPI) increased 0.4 percent m-o-m in October, following a decline of 0.3 percent m-o-m September.

For the 12 months through October, the PPI rose 1.1 percent after a 1.4 percent advance in the previous month. That marked the smallest gain in PPI since October 2016.

Economists had forecast the headline PPI would increase 0.3 percent m-o-m and 0.9 percent over the past 12 months.

According to the report, the October climb in final demand prices reflected a 0.3 percent m-o-m increase in prices for final demand services and a 0.7 percent m-o-m surge in prices for final demand goods.

Excluding volatile prices for food and energy, the PPI advanced 0.3 percent m-o-m and 1.6 percent over 12 months. Economists had forecast gains of 0.2 percent m-o-m and 1.5 percent y-o-y, respectively.