Producer prices rose 1.3% in September against a 0.6% forecast, pushing the annual rate to 6.3% on oil. Retail sales beat at 0.8%, but the control group rose just 0.1% while real wages fell 0.7% on the year.
Gasoline’s 20% wholesale surge accounted for about half of the goods jump, the largest monthly gain in that BLS series since it began in 2009, keeping Fed hike odds in play after Wednesday’s hot CPI. Source
Producer prices ran hot in September. The Producer Price Index (PPI) for final demand rose 1.3% on the month against a 0.6% forecast, after 0.5% in August. The annual rate hit 6.3% versus 5.3%, the highest since 6.4% in December 2022. Core PPI, which excludes food and energy, rose 0.7% versus 0.3% expected, and is up 5.0% on the year versus 4.4%. It arrived a day after a CPI print that pushed October rate-hike odds near 50% before they faded.
