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“Terrifying data” far exceeds expectations: US September PPI data surges

PANews October 15 reported that US September PPI annual rate came in at 6.3%, reaching 2026’s highest level since May, above the market expectation of 5.3%. US September PPI monthly rate came in at 1.3%, significantly above the market expectation of 0.5%. US September retail sales monthly rate came in at 0.8%, above market expectations. Even excluding highly volatile food and energy, core PPI rose month on month by 0.7%, and rose year on year by 5.0%, highlighting the extreme resilience of underlying price pressures.PPI has long been regarded as a leading indicator of transmission to end-consumer prices. Since some components will be directly incorporated into the Federal Reserve’s most closely watched Personal Consumption Expenditures (PCE) price index, with airfares jumping 5%in a single month, and other key data, will undoubtedly push up the October 29 reading scheduled for publication on PCE further, closing off the path for prices to fall back to the 2%long-term target.

Source: https://www.panewslab.com/zh/articles/01a13fb6-0b68-7059-a91b-0115393e1cd4