In September, the U.S. PPI rose by 0.3% month-on-month, driven by rising energy costs pushing inflation up

One of the key inflation indicators in the United States—the Producer Price Index (PPI) rose month-on-month, indicating that inflation rebounded in September, with rising energy and food prices being the main driving forces, adding new considerations for the Federal Reserve's monetary policy decisions.

Data released by the U.S. Bureau of Labor Statistics on Tuesday showed that the PPI rose 0.3% month-on-month in September, in line with expectations of a 0.3% increase, following a 0.1% decline in August. The core PPI, excluding food and energy, rose 0.1% month-on-month, below the expected increase of 0.2%, and down from a previous decline of 0.1%.

In terms of year-on-year data, the PPI increased by 2.7% compared to the same period last year, slightly above the expected 2.6% increase, and matching the previous value of 2.7%; the core PPI rose 2.6% year-on-year, below the expected 2.7% increase, and down from a previous increase of 2.9%.

The report was originally scheduled for release on October 16 but was delayed due to the government shutdown. Notably, the Bureau of Labor Statistics did not announce the release date for the October PPI in the report published on Tuesday.

The timing of this data release comes a month after the September Consumer Price Index (CPI) report, which indicated that inflation was below expectations, while wholesale price data suggested that businesses might be limiting price increases.

Energy-Driven Commodity Price Increases

Data shows that wholesale commodity prices in the U.S. rose 0.9% month-on-month in September, with 60% of the increase attributed to rising gasoline costs. The data also indicated that energy price fluctuations continue to be a major driver of wholesale inflation.

In contrast, service costs remained flat month-on-month in September, following a decline in August. This suggests that price pressures at the wholesale level are primarily concentrated in the commodity sector.

Within the service categories, profit margins for wholesale machinery and equipment declined, while profit margins for food wholesalers increased. Additionally, the cost of air passenger services also rose.

This divergent pattern reflects differences in cost transmission and pricing power across various service industries.

At the same time, data released by the U.S. Bureau of Labor Statistics indicated that businesses may be concerned that significant cost increases could lead to customer loss, and therefore, in the face of higher import tariffs, they are limiting the extent of price increases to compensate