Producer Prices Rise More Than Expected in September, Keeping Pressure on Inflation

U.S. producer prices increased more than expected in September amid higher costs for energy and food.

Underlying inflation pressures at the factory gate continued to ease in September.

Higher gasoline and food prices could hamper progress on inflation by raising costs of other goods and inflation expectations.

Services prices rose moderately in September, boosted by deposit services and hotel/motel costs.

Core PCE inflation, tracked by the Fed, is estimated to have eased slightly to 3.7% year-over-year in September from 3.9% in August.