The producer price index, a measure of what producers get for final demand goods and services, increased a seasonally adjusted 0.3% in September. However, excluding food and energy, the index rose just 0.1%. Both core and headline PPI had decreased 0.1% in August. Headline PPI was up 2.9% from a year ago, while core rose 2.6%.
Goods prices drove the PPI increase, rising 0.9% on the month, while services prices were flat. The jump in goods prices was the biggest since February 2024, according to BLS data.
Final-demand energy prices jumped 3.5% for the month, while food rose 1.1%. Of the energy increase, much of that was tied to an 11.8% surge in gasoline.
On the services side, transportation and warehousing prices rose 0.8%, while airline passenger fees surged 4%.
In other economic news Tuesday, the Census Bureau said retail sales increased 0.2% in September. Sales excluding autos rose 0.3%, in line with the estimate.
Miscellaneous retailers saw a 2.9% increase on the month, while gas stations, owing to the higher prices, increased 2%. Sporting goods, hobby and music stores saw a 2.5% decline while online sales were off 0.7%.
Sales at eating and drinking establishments, an indicator of discretionary spending, increased a solid 0.7% on the month and were up 6.7% from a year ago.
Retail sales, which are adjusted for seasonality but not inflation, increased 4.3% from a year ago, ahead of the 3% CPI rate for the month.