Inflation is spreading beyond the energy sector, according to recent reports. The producer price index jumped 1.3% in September, the largest increase since March 2022, and is up 6.3% for the year.
What happened
Prices for goods in the producer price index rose 2.6% in September and are up 9.8% from a year ago. While energy prices accounted for most of the increase, core goods prices, excluding food and energy, were still up 0.3% for the month and 5.1% for the year.
Services prices also rose, increasing 0.8% last month and 4.9% from a year ago. The core PPI, which excludes food and energy, rose 0.7%, more than double the expected increase. Retail sales were up 0.8% in September and 6.3% from a year earlier, despite high gasoline prices.
The strength in retail sales and factory expansion may give the Federal Reserve confidence to hike interest rates. The regional Fed factory surveys showed continued expansion, with the Empire State manufacturing index jumping to 25.5, its strongest reading in nearly five years.
