U.S. Wholesale Prices Jump 1.3% in September, Highest in Over Four Years
The Producer Price Index rose 1.3% month-over-month and 6.3% year-over-year in September, driven largely by energy costs, while retail sales growth slowed.
The U.S. Producer Price Index (PPI) increased 1.3% in September from the previous month and 6.3% from a year earlier, according to data from the Bureau of Labor Statistics released Thursday. The rise marks the strongest monthly gain since March 2022 and the highest annual rate since December 2022, when inflation reached a 40-year high.
Energy prices accounted for about 80% of the 2.9% jump in goods prices, the largest monthly increase recorded by the BLS since 2009. Core PPI, which excludes food and energy, rose 0.7% month-over-month, its fastest pace in five months, taking the annual core rate to 5%, the highest level since January 2023.
The latest wholesale-price data followed a September Consumer Price Index report that showed broadening inflationary pressures. A Commerce Department report also indicated that retail sales grew only 0.8% in September after a 1.3% gain in August, and when adjusted for the month’s price increases, the growth rate was even lower.
Market reactions were mixed: Dow futures edged up 0.3%, while S&P 500 and Nasdaq 100 futures slipped 0.3% and 1.2%, respectively.