US producer prices make their biggest monthly jump since March 2022
US producer prices rose 1.3 per cent in September, the largest monthly increase since March 2022. Energy accounted for most of the rise in goods prices, while services also became more expensive. The annual rate reached 6.3 per cent. Beneath the aggregate increase, gasoline and transport rose sharply while some individual prices, including eggs, fell.
Economics & Markets··Night
Energy and services lift US producer prices
US producer prices increased sharply in September, with gains in both goods and services. The Bureau of Labor Statistics, the US agency measuring prices and employment, published the monthly figures on October 15. Its final-demand index tracks prices received by producers for goods and services sold for final demand, covering a different stage of transactions from household consumer prices.[1], [2]
The seasonally adjusted increase was 1.3 per cent from August, following rises of 0.5 per cent in August and 0.2 per cent in July. September brought the largest monthly advance since the 1.7 per cent increase in March 2022. The unadjusted annual rate reached 6.3 per cent, its highest since the 6.4 per cent recorded in December 2022.[1]
Gasoline supplies about half the goods increase
Goods prices rose 2.6 per cent, the biggest monthly increase in the series that began in December 2009. Energy prices jumped 10.8 per cent and accounted for more than 80 per cent of the goods advance. Gasoline alone became 20.3 per cent more expensive and supplied about half the overall goods increase, making fuel a large contributor to September’s movement.[1]
Food prices increased 1.2 per cent, while goods excluding food and energy rose 0.3 per cent. Changes within the food basket varied considerably: egg prices fell 39.7 per cent. The aggregate rise therefore included sharp declines in some products alongside the increases elsewhere. Food, energy and the remaining goods components each describe a separate part of the final-demand goods basket.[1]
Trade margins and transport push services higher
Services prices increased 0.8 per cent. Trade services, mainly the margins earned by wholesalers and retailers, rose 1.4 per cent and accounted for nearly half of that increase. Transportation and warehousing services rose 3.4 per cent. Prices for services excluding trade, transportation and warehousing increased 0.3 per cent, extending September’s price gains beyond the most rapidly rising categories.[1]
Machinery and vehicle wholesaling margins rose 3.9 per cent, while fuel retailing margins dropped 30.3 per cent. These margins measure the seller’s trading service rather than the product’s selling price. Final demand excluding food, energy and trade services rose 0.5 per cent in September, after 0.3 per cent in August. Over twelve months, that narrower index increased 5 per cent.[1]
