The U.S. Labor Department said its producer price index increased 0.4 percent last month after a similar gain in September, reported Reuters. Over the past year, the PPI jumped 2.8 percent, the single largest increase since February 2012. Economists polled by Reuters had forecast the PPI edging up 0.1 percent last month.
The strong PPI data may inspire more confidence in Federal Reserve leaders this December, when the central bank is expected to hike rates for a third and final time in 2017. The monetary body has been considering a rate hike for months, with hawks arguing that, given the strength of the economy, it will only be a matter of time until inflation metrics revive.
Fed Chair Janet Yellen is currently taking part in a major central banking panel, titled "At the heart of policy: Challenges and opportunities of central bank communication."
The panel is currently taking place at the Central Bank Communications Conference in Frankfurt, Germany, and also features Bank of England Governor Mark Carney, European Central Bank President Mario Draghi and Bank of Japan Governor Haruhiko Kuroda.
Prior to the opening bell on Tuesday, Chicago Fed President Charles Evans called for a fresh approach when it comes to rate-setting, which could allow a central bank to react to shocks when cutting interest rates is not enough on its own.
In the political space, U.S. President Donald Trump will be concluding his trip in Asia today. The U.S. incumbent said that he had made it evident during his visit that the U.S. was open to trading with other nations, on the condition that the policies were fair and reciprocal to the U.S., according to Reuters.
Elsewhere, the future of a tax reform deal in the U.S. is expected to add uncertainty to markets throughout the trading day, as investors show concern over whether a reform will be done during 2017.