Producer prices up 8.6% annually in September
manufacturer’s prices September grew at the fastest annual pace on record for the sixth straight month as supply-chain bottlenecks and material shortages continued to drive up costs.
According to the Labor Department, the producer price index for final demand rose 8.6% year over year. Analysts polled by Refinitiv were forecasting that the reading was below an 8.7% increase. Producer prices rose 8.3% year over year in August.
Prices rose 0.5% in September, slowing from 0.7% in August. Economists were expecting 0.6% growth.
Nearly 80% of September’s growth was due to a 1.3% rise in prices of final demand goods, the biggest gain since May. A forty percent increase was due to a 2.8% increase in prices for final energy demand.
Final demand services prices rose 0.2% last month, the ninth consecutive monthly increase. More than two-thirds of the increase was driven by an 11.6% increase in fuels and lubricants for retail sales.
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Key producer prices, excluding food and energy, rose 6.8% annually and 0.2% in September. Economists were expecting growth of 7.1% and 0.5%, respectively. The annual increase was the largest since the data set was introduced in August 2014.