Producer Prices Rise More Than Expected in September on Higher Energy and Food Costs

Producer prices rose 0.5% in September, exceeding forecasts, boosted by higher energy and food costs.

Gasoline prices jumped 5.4%, threatening recent progress in taming producer inflation.

Prices of goods rose on energy and food costs, while services prices increased just 0.3%.

Stripping out food, energy and trade services, prices rose 0.2% for a second month.

Economists watch PPI as it factors into the Fed's preferred inflation measure, PCE, ahead of their next meeting.