Core wholesale costs rose lower than anticipated in September; Enhance in retail gross sales

Core wholesale prices rose less than expected in September, suggesting a possible cooling in pipeline inflation pressures, the Bureau of Labor Statistics reported on Tuesday.

The producer price index, a measure of what producers receive for final demand for goods and services, rose a seasonally adjusted 0.3% month-on-month, in line with the Dow Jones consensus estimate.

However, excluding food and energy, the index rose just 0.1%, below the 0.2% estimate. Both core and headline PPI were down 0.1% in August. Overall PPI rose 2.7% year-on-year, while core producer price rose 2.6%.

At a time of tariff-driven import cost pressures, goods prices drove the producer price index rise, rising 0.9% month-on-month, while services prices remained flat. The increase in commodity prices was the largest since February 2024, according to BLS data.

Final energy prices rose 3.5% this month, while food prices rose 1.1%. Much of the energy increase was due to an 11.8% increase in gasoline consumption.

On the services side, transportation and storage prices rose 0.8%, while airline passenger fees rose 4%.

September’s PPI release, like most other key official data points, was delayed due to the government shutdown. The BLS may not release October PPI data because it has already posted the October consumer price index report. The November CPI is expected to be released on December 18th. The PPI release is usually timed around the CPI.

In other economic news Tuesday, the Census Bureau said retail sales rose 0.2% in September, slightly weaker than the 0.3% forecast. However, sales excluding cars rose 0.3%, in line with the estimate.

Other retail saw a 2.9% increase month-on-month, while gas stations saw a 2% increase due to higher prices. Sporting goods, hobby and music stores saw a 2.5% decline, while online sales fell 0.7%.

Food service sales, an indicator of discretionary spending, rose a whopping 0.7% month-over-month, up 6.7% year over year.

Retail sales, which are seasonally adjusted but not adjusted for inflation, rose 4.3% from a year ago, above the CPI rate of 3% for the month.

Correction: September’s overall PPI increased 2.7% year-over-year. A previous version incorrectly stated the percentage.