Producer Prices Jump 1.3%, Largest Monthly Increase Since March 2022

Wholesale prices surged in September as energy costs spiked, posting the largest monthly increase in more than four years, the Bureau of Labor Statistics reported.

The Producer Price Index for final demand rose a seasonally adjusted 1.3% in September, following increases of 0.5% in August and 0.2% in July. It was the biggest monthly gain since March 2022, when prices rose 1.7%.

Over the past 12 months, producer prices climbed 6.3% on an unadjusted basis, the largest annual increase since December 2022.

Goods prices drove the increase, rising 2.6% in September, the largest monthly gain since the data series began in December 2009. More than 80% of that increase came from energy prices, which jumped 10.8%. Gasoline alone accounted for half of the rise in goods prices after surging 20.3%.

Food prices rose 1.2%, while goods excluding food and energy increased 0.3%. Prices for services rose 0.8%.

Core prices, which excludes food, energy and trade services, rose 0.5% in September after a 0.3% gain in August. That measure is up 5% over the past year.

The report follows September consumer price data showing inflation accelerating to 3.7% annually, with gasoline also the main driver.