A key measure of prices charged for goods and services produced in the U.S. showed that inflation continued to ease in September.
The core producer price index, which excludes food and energy prices, ticked up by 0.1 percent, the Department of Labor said Tuesday. The report was delayed by several weeks due to the prolonged funding lapse that occurred when Democrats in the Senate filibustered appropriations bills required to keep the federal government functioning.
Including food and energy, the producer price index rose three-tenths of a percent in September. Energy prices jumped 3.5 percent, driven by an 11.8 percent rise in gasoline prices. Food prices increased by 1.1 percent.
Compared with a year ago, core prices were up 2.6 percent, a tenth of a point lower than the August annual increase of 2.7 percent. The broader index rose by 2.7 percent over the 12 months through September, a tenth of a point higher than the August increase.
The producer price index measures prices paid to U.S. producers of goods and services. It is not a measure of wholesale prices, although it is often referred to as a wholesale price index. The headline numbers come from the index for final demand, which are based on prices of goods sold to households for personal consumption, foreign consumers, governments, and to businesses as capital investments.
Prices of final demand goods rose by 0.9 percent. Two-thirds of that increase was driven by the rise in energy prices, which rose at the fastest pace since February 2024. Excluding food and energy, goods prices rose 0.2 percent. Compared with a year ago, goods prices were up 3.3 percent.
Services prices were flat for the month after falling 0.3 percent in August. Prices for transportation and warehousing services rose 0.8 percent for the month, driven by a four percent rise in the cost of passenger transportation that more than offset a 0.3 percent decline in the prices of transportation and warehousing of goods. Margins for trade services—a measure of the change in the prices of goods paid to retailers and wholesalers compared with their cost of goods—fell 0.2 percent. Excluding trade services, transportation, and warehousing, services prices rose 0.1 percent.
Prices of durable consumer goods rose 0.2 percent and are up 2.6 percent from a year ago. Prices of capital equipment purchased by businesses rose 0.2 percent for both manufacturing industries and non-manufacturing firms. Over 12 months, capital equipment prices for manufacturers have climbed 4.6 percent and prices for non-manufacturers rose 2.9 percent.
The producer price index also measures prices paid for intermediate goods and services, which are products sold to businesses as inputs to production and construction, excluding capital investment. Prices for processed goods for intermediate demand rose 0.4 percent in September, the third consecutive monthly increase. Energy prices—particularly gasoline prices—were the biggest driver of the September increase. These rose 0.9 percent. Intermediate food prices rose 1.1 percent. Excluding food and energy, intermediate goods prices rose 0.2 percent.
Prices for raw goods ticked up 0.1 percent after falling by 1.8 percent. A major factor in the price of unprocessed goods was an 8.2 percent rise in the price of corn. The index for crude oil, natural gas, raw milk, and copper declined.
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