Affected by the decline in gasoline prices, the US September PPI remained flat month-on-month, indicating a further trend towards stable inflation.
On Friday, October 11th, the US Bureau of Labor Statistics released data showing that the US September PPI was flat at 0%, below the expected value of 0.1% and lower than the previous value of 0.2%.
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The PPI index, excluding the more volatile food and energy categories, rose by 0.2% month-on-month as expected, lower than the previous value of 0.3%, and rose by 2.8% year-on-year, higher than expected and the previous value.
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Institutional analysis points out that the flat US September PPI indicates a favorable inflation outlook, supporting the view that the Federal Reserve will cut interest rates again next month.
After the data was released, US stock index futures rose slightly. S&amp;P 500 index futures rose by 0.07% intraday, while Dow futures rose by 0.12%; the US dollar index fell in the short term, down by 0.07% intraday.
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The yield on US 2-year Treasury bonds fell by 0.6 basis points to 3.98%.
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Spot gold rose, reaching $2650 per ounce, up by 0.78% intraday.
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<h2>Due to the decrease in gasoline costs, the September PPI remained flat compared to the previous month</h2>
The report shows that service costs increased by 0.2%, lower than the 0.4% increase in the previous month. Excluding food and energy, commodity prices rose by 0.2% for the third consecutive month.
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Following the flat performance in August, the final demand goods index fell by 0.2% in September. The decline was due to a 2.7% drop in final demand energy prices. In comparison, the final demand food index and the final demand goods (excluding food and energy) index rose by 1.0% and 0.2% respectively.
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In September, the final demand services index rose by 0.2%, compared to a 0.4% increase in August. The final demand services prices (excluding trade, transportation, and warehousing) rose by 0.1%. The final demand trade services index and the final demand transportation and warehousing services index also rose by 0.2% and 0.3% respectively.
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The cost of intermediate demand processed goods (reflecting early-stage prices in the production process) fell by 0.8% due to a significant drop in diesel prices.
After falling to a three-year low last month, commodity prices rebounded significantly. Geopolitical concerns in the Middle East led to an increase in oil prices, while enthusiasm for favorable policies in China drove up metal prices.
Yesterday's release of the September CPI data in the United States showed that doctor and hospital outpatient care costs remained almost unchanged, while airfare prices rebounded significantly. Housing, food, and clothing costs rose, with the inflation rate in September slightly higher than expected. Following the data release, market expectations for a 25 basis point rate cut by the Federal Reserve in November have increased.
Since reaching its peak in the summer of 2022, inflation in the United States has significantly slowed down, with price increases now aligning more closely with the levels the Federal Reserve hopes to see. As a result, Federal Reserve officials have now shifted from trying to control inflation to trying to maintain a healthy job market, the other half of the so-called dual mandate

Excluding the volatile food and energy categories, the PPI index rose by 0.2% month-on-month, in line with expectations but lower than the previous value of 0.3%. Institutional analysis indicates that the U.S. PPI remained flat in September, suggesting a favorable inflation outlook and supporting the view that the Federal Reserve will cut interest rates again next month

- In September, the U.S. PPI remained unchanged at 0%, influenced by falling gasoline prices, indicating stable inflation.  
- The core PPI, excluding food and energy, rose by 0.2%, aligning with expectations, while the overall inflation rate has significantly slowed since its peak in summer 2022.  
- Analysts suggest this stability supports the Federal Reserve's potential interest rate cut next month, as market reactions show slight gains in stock futures and a decline in the dollar index.

Due to the decline in gasoline prices, the US September PPI remained flat from the previous month, further cooling inflation