US producer prices jump in September as energy costs surge

15th Oct 2026 14:00

(Sharecast News) - US producer prices jumped in September, posting their strongest monthly rise in more than four years as energy costs surged, according to the Bureau of Labor Statistics.

The producer price index for final demand rose 1.3% month‑on‑month, following increases of 0.5% in August and 0.2% in July - marking the biggest monthly gain since March 2022. On an unadjusted basis, final demand prices were 6.3% higher than a year earlier, the fastest annual pace since December 2022.

Final demand goods led the advance, with prices up 2.6%, the largest increase since the series began in 2009, with more than 80% of that rise coming from a 10.8% jump in energy prices. Food prices increased 1.2%, while goods excluding food and energy rose 0.3%.

Gasoline was the standout driver, with prices up 20.3% on the month, while diesel, jet fuel, residential electric power, crude petroleum and fresh vegetables also saw notable increases.

Services inflation also strengthened, with final demand services up 0.8%, matching the strongest reading since April. Nearly half of the rise came from a 1.4% increase in trade margins. Transportation and warehousing services climbed 3.4%, while other services excluding trade and transport rose 0.3%.

Machinery and vehicle wholesaling margins rose 3.9%, contributing more than 20% of the overall services increase, while gains were also recorded in freight trucking, food and alcohol wholesaling, traveller accommodation, food retailing and airline fares.

Stripping out food, energy and trade services, core PPI rose 0.5% in September and was 5% higher year‑on‑year.

Reporting by Iain Gilbert at Sharecast.com