FX.co ★ US Producer Prices Rebound as Expected

In September 2025, US producer prices experienced a 0.3% rise from the prior month, rebounding from an unexpected 0.1% decline in August and aligning with market forecasts, as reported in a belated release by the Bureau of Labor Statistics (BLS). The sharp increase in factory gate prices was notably driven by food costs, which surged by 1.1% compared to just 0.1% in August, primarily due to higher meat prices that counterbalanced a decrease in vegetable costs. Additionally, the Producer Price Index (PPI) saw a resurgence in the energy sector, climbing by 3.5% after a 0.4% decline, spurred by higher prices of natural gas liquids and ethanol. This propelled goods inflation to a monthly rate of 0.9%, marking the highest increase in over a year. Meanwhile, prices for services remained unchanged, maintaining the 0.3% decrease from the previous month. On an annual basis, producer price inflation held steady at 2.7%.