The component surge accompanies a broader acceleration in the September Producer Price Index, which rose 1.3% from August and 6.3% from a year ago, topping consensus estimates of 0.6% and 5.4% for the largest monthly and annual gains since 2022. Final demand goods prices jumped 2.6% on the month, the biggest increase since the Bureau of Labor Statistics began tracking the series in December 2009, led by a 10.8% surge in energy costs as wholesale diesel rose 21%, gasoline climbed 20.3% and grains gained 17%. Core PPI, which excludes food and energy, increased 0.7% on the month and 5% over the past year, beating forecasts of 0.3% and 4.4%.
Tuesday, October 20, 2026
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US Chip Producer Prices Surge 27% as AI Data Centers Squeeze Supply
Tech4 days ago
US producer prices for semiconductors and electronic parts climbed 27% from a year earlier, hovering near a June peak of 27.6% that surpassed the previous high set in 1980, as AI data centers absorb component supply. Memory prices have jumped 245% over the past year, and research firm IDC forecasts the average smartphone price will increase 27.6% to $581 this year as chipmakers charge device manufacturers more.
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