Producer Prices Rise 1.3% in September as Goods Jump 2.6%

What changed

The Producer Price Index for final demand rose 1.3% in September. Prices for final-demand goods jumped 2.6%, while final-demand services rose 0.8%.

Over the 12 months through September, final-demand prices increased 6.3%.

Why it matters

The important detail is the gap between goods and services. September’s increase was much steeper for goods than for services, so the headline number is not describing a uniform move across the economy.

The 6.3% annual increase also puts the monthly result in a wider frame: prices were considerably higher than a year earlier. What happens next will depend on whether this September rise persists and whether it passes through to consumers or squeezes business margins. The figures alone do not establish either outcome.