U.S. producer prices increased less than expected in October, further evidence that inflation was starting to subside.

The producer price index for final demand rose 0.2% last month, the Labor Department said on Tuesday. Data for September was revised lower to show the PPI rebounding 0.2% instead of 0.4% as previously reported. In the 12 months through September, the PPI increased 8.0 after climbing 8.4% in September.

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Government data last week showed consumer prices rose less than expected in October, pushing the annual increase below 8% for the first time in eight months. Inflation is slowing as higher interest rates dampen demand and supply chains recover.

But with spending rotating back to labor-intensive services and the jobs market still tight, price pressures could remain elevated for a while.

The Fed early this month delivered a fourth consecutive 75-basis-point interest rate hike and said its fight to lower inflation to the U.S. central bank’s 2% target would require borrowing costs to rise further. It, however, signaled it may be nearing an inflection point in what has become the fastest rate hiking cycle since the 1980s.

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Excluding the volatile food, energy and trade services components, producer prices rose 0.2% in October. The so-called core advanced 0.3% in September. In the 12 months through October, the core PPI rose 5.4% after increasing 5.6% in September.