U.S. PPI posts largest increase since 2022, energy shock continues to pass through

U.S. producer prices rose in September at the fastest pace in more than four years, as the impact of higher energy costs rippled further through the economy. Data released Thursday by the U.S. Bureau of Labor Statistics showed that the producer price index rose 1.3% month over month in September, the largest increase since March 2022, and was up 6.3% year over year. Excluding food and energy, core PPI rose 0.7% month over month and 5% year over year. Both exceeded the expectations of all economists surveyed by Bloomberg. The report shows that while fuel prices are rising, underlying inflationary pressures remain firm. With the November midterm elections approaching, the cost of living is becoming a central issue for voters. The report may also keep Federal Reserve officials on a path of further interest rate hikes in the coming months, especially after another report on Wednesday showed that a key consumer price gauge rose more than expected in September.