U.S. producer prices rose in September by more than expected on the back of surging energy costs. The producer price index (PPI) rose by 0.5% last month, following a 0.7% rise during the previous month.
September’s PPI rise exceeded the 0.3% gain expected by analysts. Throughout the 12 months leading up to September, PPI rose by a combined 2.2%. When excluding surging energy costs, PPI rose by a menial 0.2% last month.
This report comes ahead of Thursday’s consumer price data, which is expected to provide clues on the Federal Reserve’s next interest rate policy decision. U.S. labor data is also expected to provide an indication of the Fed’s policy trajectory, with 336,000 jobs being added in September. Since March 2022, the Fed’s benchmark rate has been raised by 525 basis points to the current 5.25%-5.50% range.
