Core wholesale price increases were weaker than expected in September, the Bureau of Labor Statistics said Tuesday, indicating that pipeline inflationary pressures may ease.
The producer price index, which measures what producers get for final goods and services, rose a seasonally adjusted 0.3% from a month earlier, in line with the Dow Jones consensus forecast.
However, the index excluding food and energy rose only 0.1%, lower than the 0.2% expected. Both core PPI and composite PPI fell by 0.1% in August. Comprehensive PPI increased by 2.7% year-on-year, while core increased by 2.6%.
In an era of import cost pressure due to tariffs, service prices remained flat, while commodity prices led the PPI increase, rising 0.9% month-on-month. The increase in commodity prices was the largest since February 2024, according to BLS data.
Final demand energy prices rose 3.5% over the month, while food prices rose 1.1%. Much of the energy increase is related to an 11.8% increase in gasoline prices.
In terms of services, transportation and warehousing prices rose by 0.8%, and air passenger charges rose by 4%.
The September PPI release, along with other key official data, was postponed due to the government shutdown. The BLS has already canceled its Consumer Price Index report for October, so it may not release PPI data for October. The CPI for November is scheduled to be released on December 18th. PPI announcements are usually timed to coincide with the CPI.
In other economic news Tuesday, the Census Bureau said retail sales rose 0.2% in September, slightly slower than the expected 0.3%. However, sales excluding automobiles increased by 0.3%, in line with expectations.
Sales at other retail stores increased by 2.9% compared to the same month, and sales at gas stations increased by 2% due to soaring prices. Sporting goods, hobby and music stores were down 2.5%, and online sales were down 0.7%.
Restaurant sales, which are an indicator of discretionary spending, were steady at 0.7% month-on-month increase, and 6.7% year-on-year increase.
Seasonally adjusted, not inflation, retail sales rose 4.3% from a year earlier, outpacing the CPI rate of 3% for the month.
Correction: Composite PPI rose 2.7% year-on-year in September. Percentages were listed incorrectly in previous versions.
