US Producer Price Inflation Continues Elevated in September led by Services

US Producer price inflation for September continues elevated at a rapid pace. The PPI advanced 8.5% on a year-over-year basis (expectations were 8.4%), down from last month’s 8.7% rise. On a month-to-month basis, producer prices rose 0.4%, compared to a decline of 0.2% in August. Analysts were expecting a monthly increase of 0.1%. Core PPI, which excludes food and energy, increased by 7.2% on a yearly basis and 0.3% on a monthly basis. Both in line with expectations.

The Federal Reserve has been on an aggressive path to reducing historically high U.S. inflation, we are a long way from the Central Bank transitory mantra.


September 2022 PPI

The Producer Price Index year-on-year rose 8.5%, the smallest rate since July last year, but slightly above forecasts of 8.4%. 

US June PPI Highlights.

  • US PPI Final Demand (M/M) Sep: 0.4% (est 0.2%; prev R-0.2% from -0.1%)
  • US PPI Ex Food And Energy (M/M) Sep: 0.3% (est 0.3%; prev R 0.3% from 0.4%)
  • US PPI Final Demand (Y/Y) Sep: 8.5% (est 8.4%; prev 8.7%)
  • US PPI Ex Food And Energy (Y/Y) Sep: 7.2% (est 7.3%; prev 7.3%)

Where the price rises were:

  • Cost of services rose 0.4%, with prices for traveler accommodation services jumping 6.4%.
  • The indexes for food and alcohol retailing (2.6%), portfolio management (2.1%), machinery and vehicle wholesaling (1.5%), oil and gas well drilling services, and hospital inpatient care (0.4%) also rose.
  • Cost of goods went up 0.4%, with food prices rising 1.2%, namely fresh and dry vegetables (15.7%). Prices for diesel fuel (9.1%), residential natural gas (2.6%), chicken eggs (16.7%), home heating oil (10.7%), and pork (5.5%) also moved higher.
  • Conversely, the index for gasoline fell 2%.

US PPI June 2022

United States Consumer Price Index (CPI)
US PPI Annually
United States Producer Price Inflation MoM
US PPI Monthly

United States Producer Prices Final Demand Less Foods and Energy


United States Producer Prices Final Demand Less Foods and Energy YoY
US Core PPI Inflation Annually
United States Producer Prices Final Demand Less Foods and Energy MoM
US Core PPI Inflation Monthly

PPI was released one day ahead of consumer price data for September, which will offer important clues on how aggressive the Fed will be in hiking interest rates. Economists expect CPI to rise 8.1% year over year, which would be a decline from the prior month’s 8.3% increase. However, they also expect CPI to climb 0.2% month over month, up from last month’s 0.1% increase.

Source BLS

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