Following yesterday’s increase in consumer price inflation, producer prices also rose in September, the Bureau of Labor Statistics reported.
Producer prices climbed 0.4% in September, more than economists had expected and slightly more than in August. It was the third-straight month of price increases for producers.
Demand for services — and specifically prices for traveler accommodation services, which jumped 3.9% — was the biggest driver behind the price increase.
Stripping out the more volatile items like food, energy and trade services, prices rose 0.4%, the largest increase since April 2019.
Looking at the longer term, the price increase was even more substantial: over the past 12 months ended September, prices climbed 0.4%, the first increase since March.