US producer prices rebound in September
- U.S. producer prices increased 0.2 percent in September, reversing an unexpected decline in August.
- A rise in services prices offset a slight drop in prices for goods.
- Economists polled by Reuters had forecast the PPI increasing 0.2 percent in September.
U.S. producer prices increased 0.2 percent in September, reversing an unexpected decline in August and in line with expectations.
A rise in services prices offset a slight drop in prices for goods. Final demand prices had fallen 0.1 percent in August. In the 12 months through September, the producer price index rose 2.6 percent, slightly less than expected.
Economists polled by Reuters had forecast the PPI increasing 0.2 percent in September and advancing 2.8 percent year-on-year.
A key gauge of underlying producer price pressures that excludes food, energy and trade services rose 0.4 percent last month, the largest increase since January. The so-called core PPI had risen 0.1 percent in August.
In the 12 months through September, the core PPI rose 2.9 percent, the same as the month before.
The cost of services rose 0.3 percent last month, reversing two months of declines, and driven by a 1.8 percent jump in transportation and warehousing services. Over one third of the increase in services was attributed to a 5.5 percent increase in the index for airline passenger services.
The index measures changes in margins received by wholesalers and retailers. Services had fallen 0.1 percent in August.
The slight decline in goods prices was the first since May, 2017, led by a 0.8 percent drop in energy prices and a 0.6 percent drop in food. Excluding food and energy goods prices rose 0.2 percent.