U.S. producer prices rose more than expected in September as costs for energy products and food increased from rising crude oil prices.
The report from the Labor Department on Wednesday was closely watched by the market as an indicator to the upcoming release on Thursday of September’s consumer price index data, which could signal for the Federal Reserve’s actions for the upcoming meeting in November and December about its interest rates.
The US producer price index rose 0.5% in September after accelerating by 0.7% in August. The reading last month was higher than what economists from the Reuters poll had expected for a gain of 0.3%. In the 12 months through September, the PPI increased 2.2% after increasing 2.0% in August.
Meanwhile, the core PPI, which excludes food, energy and trade services components, rose 0.2% after increasing by the same figure in August.
Despite an increase in producer price, Wall Street still believed that the Federal Reserve will maintain its policy rate at its Oct. 31-Nov. 1 policy meeting, according to CME FedWatch Tool.
