US producer prices post largest increase in 4-1/2 years in September
TLT•US producer prices rose 1.3% in September, the largest monthly increase in 4-1/2 years, and were up 6.3% from a year earlier. Goods prices climbed 2.6% and services prices rose 0.8%.
1. Producer prices surge
The Producer Price Index for final demand rose 1.3% in September after an upwardly revised 0.5% increase in August. Economists had forecast a 0.5% increase. The year-over-year gain accelerated to 6.3% from 5.6% in August.
2. Goods and services rise
Producer goods prices increased 2.6%, with energy prices up 10.8% and gasoline prices up 20.3%. Services prices rose 0.8%, including a 1.4% increase in trade services margins. The Federal Reserve tracks Personal Consumption Expenditures price indexes for its 2% inflation target; economists' estimates for September core PCE inflation ranged from 0.3% to 0.4%.
