US Producer Prices Rise 6.3% as Energy Costs Surge

U.S. producer prices rose 1.3% in September from August and 6.3% from a year earlier, the Bureau of Labor Statistics reported Thursday, extending an acceleration in inflation led largely by energy costs. The annual increase was up from 5.6% in August and was the largest since December 2022. The monthly gain was the steepest since March 2022. The figures followed a hotter-than-expected consumer inflation report released Wednesday, adding to attention on the Federal Reserve’s next interest-rate decision. The September producer-price data do not determine what the central bank will do at its October 27-28 meeting. Energy drove much of the increase in goods prices. Final-demand goods prices rose 2.6% in September, with energy accounting for more than 80% of the gain, according to the BLS. Final-demand energy prices increased 10.8%, while gasoline prices jumped 20.3%. Food prices rose 1.2% after three monthly declines. Prices for services increased 0.8%, following a 0.2% rise in August. Transportation and warehousing costs climbed 3.4%, while trade services margins also rose.