U.S. Producer Prices Rose 6.3% Year Over Year in September, Fastest Since 2022

U.S. producer prices climbed 6.3% over the year through September, the fastest annual pace since 2022, adding to rate concerns for markets including crypto as investors weigh the Federal Reserve’s next move.

The Producer Price Index advanced 1.3% from August. That was its largest monthly rise since March 2022 and exceeded forecasts for a 0.6% monthly increase and a 5.5% annual gain.

Energy costs drove a substantial share of the increase. Diesel prices were tied to nearly half of September’s rise in processed goods for immediate demand, pointing to pressure spreading beyond energy. Core producer prices, which exclude food and energy, rose 0.7% for the month and 5% from a year earlier.

The report followed September consumer-price data showing a 3.7% annual increase. Interest-rate futures reflected a nearly 34% probability of a Fed rate increase at its Oct. 28 meeting, up from less than 18% a week earlier; about 90% priced in at least one increase by year-end.

The figures put the Fed’s Oct. 28 decision in focus for investors assessing borrowing costs and risk assets.