The broad advance pushed the headline Producer Price Index up 1.3% from August, more than double the 0.6% consensus estimate and the largest monthly gain since March 2022, lifting the annual rate to 6.3% from an upwardly revised 5.6% in August. Even without energy, monthly headline PPI rose more than 0.6%. Core PPI, which excludes food and energy, climbed 0.7% on the month and 5% over the past year, topping forecasts of 0.3% and 4.4%.
The report followed a hotter than expected 3.7% September consumer price print a day earlier and coincided with data showing September retail sales rose 0.8% overall but just 0.2% excluding autos and gasoline. Despite increased odds of another Fed rate hike following the September increase, US equities reversed early losses to finish higher, with the Dow rising 1.1% and the S&P 500 gaining 0.4% as the 10 year Treasury yield fell to about 5.09%.