Core PPI jumps 0.7% in September, more than double forecasts
The reading follows a hotter-than-expected headline PPI print and a CPI surprise two weeks earlier.
Published
Core producer prices rose 0.7% in September from August, more than double the 0.3% gain economists had forecast, according to the official release. August's core reading was a 0.2% increase.
The core figure arrived alongside a headline PPI jump of 1.3% for September, also released Thursday, far above the 0.6% expected and up from 0.4% in August.
The producer price data follows a CPI report two weeks earlier that showed both headline and core inflation accelerating beyond consensus.
With producer prices again running ahead of forecasts, the case made by Fed officials pressing for further tightening gains more grounding against calls for patience, and markets already pricing high odds of a December move have less reason to shift that pricing lower. Persistent cost pressure further up the chain raises the chance consumer inflation stays elevated in coming months rather than cooling, keeping long-dated Treasury yields under upward pressure.