U.S. Producer Prices Jump 1.3% in September, Exceeding Forecasts

U.S. producer prices rose 1.3% in September, far above the 0.5% monthly increase economists expected, adding to inflation pressure that may complicate the Federal Reserve’s policy path and weigh on risk-asset sentiment.

The Producer Price Index rose 6.3% from a year earlier, its highest annual rate since May 2026 and above the 5.3% forecast. Excluding food and energy, core PPI climbed 0.7% from August and 5% year over year, showing that price gains extended beyond more volatile categories.

Retail sales also rose 0.8% month over month in September, beating expectations. Some producer-price components are reflected in the Fed’s preferred inflation gauge, the Personal Consumption Expenditures price index. Airfare prices climbed 5% in September, adding a notable increase to the inputs used for that measure.

The September PCE report is scheduled for Oct. 29. PPI tracks prices received by producers and can offer an early signal of costs that may later reach consumers.