Key facts
- Producer Price Index for final demand jumped 1.3% in September.
- PPI rose 6.3% year-over-year in September.
- Producer goods prices increased 2.6% in September.
- Services prices increased 0.8% in September.
- Energy prices accounted for over 80% of the rise in goods prices.
US producer prices saw their largest monthly increase in four and a half years in September, driven by rising costs for goods and services. The Producer Price Index for final demand rose 1.3% last month, surpassing economists' expectations of a 0.5% gain. Annually, the PPI jumped 6.3% through September. Producer goods prices climbed 2.6%, largely due to an 10.8% surge in energy prices, which accounted for over 80% of the rise. Wholesale food prices rebounded 1.2%, while services prices increased by 0.8%.