The government also released delayed September Producer Price Index data, showing wholesale prices rose 0.3% from August and 2.7% year over year – both in line with expectations and largely driven by a nearly 12% jump in gasoline prices.
Core producer prices, which exclude food and energy, increased 0.1% on the month and 2.6% annually, both slightly below forecasts.
What’s the bottom line? Wholesale prices feed directly into the Fed’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) index. While some shared components – such as airline fares and nursing home care – rose, others, including portfolio management and hospital outpatient services, declined. Overall, this report isn’t expected to spark a meaningful increase in the September PCE reading, now scheduled for release on December 5.