More than double market forecast of 0.6%
Up 6.3% year-on-year, highest since Dec. 2022
![Traders at the New York Stock Exchange watch Federal Reserve Chair Jerome Powell's news conference following an interest rate announcement on July 30. The Fed said in its Beige Book report Thursday that tariff effects are materializing as price increases. [Reuters]](https://wimg.heraldcorp.com/news/cms/2026/10/15/news-p.v1.20251016.89d5ab00a7da4e1e91860e900b1ed2c7_P1.jpg)
A surge in global energy prices driven by the Middle East war pushed US producer prices to their largest monthly gain in four and a half years in September, more than doubling market expectations and deepening inflation concerns.
The producer price index rose 1.3 percent from the previous month, the US Department of Labor said Thursday (local time) — the highest monthly gain since March 2022, when it climbed 1.7 percent, and well above the 0.6 percent consensus forecast compiled by Dow Jones.
On a year-on-year basis, producer prices rose 6.3 percent, the highest reading since December 2022.
The producer price index measures prices at the wholesale level — the point at which companies sell goods and services they have produced. Because rising production costs tend to pass through to consumer prices with a lag, the index is widely used as a leading indicator of future consumer price trends.
moon@heraldcorp.com
