The Labor Department said its producer price index for final demand inched up by 0.2 percent in October, matching a revised uptick in September. "Though today's reading and last week's CPI report show prices are heading in the right direction, the Fed is still on pace to raise rates another 50bps in December, with a smaller increase possible in February, as it seeks to bring down inflation markedly," said Matthew Martin, U.S. The Labor Department released a separate report last Thursday showing U.S. consumer prices increased by less than expected in the month of October.