US PPI Higher in September as Energy and Food Costs Rose

October 14, 2016 Share Print 0

U.S. producer prices rose in September, as wholesale energy and food costs increased. But overall inflation appears to be limited, as has been the case for several years.

The Labor Department says its producer price index, which measures cost pressures before they reach the consumer, increased 0.3 percent in September. Oil prices have steadied and edged upward recently, causing energy goods to rise 2.5 percent last month. Food prices at the wholesale level rose 0.5 percent, with a 26 percent jump in chicken eggs and 10.5 percent increase in vegetables.

Core inflation, which excludes the volatile energy and food categories, rose 0.3 percent.

Over the past year, wholesale prices have increased just 0.7 percent. That is well below the 2 percent inflation target set by the Federal Reserve.

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.