US producer price inflation steadies at 2.7% in September

The pace of the US producer price inflation remained stable in September, while shifting to an increase month-on-month, signaling that the tariffs imposed by President Donald’s administration are weighing on prices.

Data released by the US Department of Labor on Tuesday showed that the Producer Price Index (PPI) rose to 2.7% in September, higher than expectations of 2.6%, with the annual increase for August revised to 2.7% from 2.6% in the previous reading.

Core producer price inflation—which excludes volatile items such as food, energy, and trade services—also rose to 2.9% year-on-year in September.

The PPI rose 0.3% MoM, in line with expectations, compared to a 0.1% decline in August.

Prices of final goods rose 0.9% MoM in September, the largest increase since February 2024, driven by a 3.5% rise in energy prices.