Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

U.S. Producer Price Growth Slows by More Than Expected

Published 14/10/2021, 13:50
Updated 14/10/2021, 13:50
© Reuters.

© Reuters.

(Bloomberg) -- Prices paid to U.S. producers rose in September at a more moderate pace, suggesting a respite from the supply chain pressures and materials shortages that have driven up the cost of production.

The producer price index for final demand increased 0.5% from the prior month and 8.6% from a year earlier, Labor Department data showed Thursday. Excluding volatile food and energy components, the so-called core PPI rose 0.2% and was up 6.8% from a year ago.

The median forecasts in a Bloomberg survey of economists called for a 0.6% month-over-month advance in the overall PPI and an 8.7% gain in the core figure.

The PPI has climbed steadily this year as interruptions in supply networks and constraints that include shortages of materials and labor, drive up production costs. Firms have passed along at least some of those costs to their customers, which explains a recent acceleration in consumer prices. 

A separate report Wednesday showed prices paid by consumers rose in September by more than forecast, posting the largest annual gain since 2008.

Countries around the world are experiencing higher inflation. In China, the world’s largest exporter, a gauge prices paid to factories rose last month by the most since 1975.

Recent U.S. inflation data reinforce the Federal Reserve’s plan to soon start pulling back monetary support, especially as bottlenecks show little signs of abating. Minutes from last month’s Fed policy meeting showed that officials assessed that if the economic recovery remains on track, “a gradual tapering process that concluded around the middle of next year would likely be appropriate.”

©2021 Bloomberg L.P.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.