Wholesale prices rose more than expected in September despite Federal Reserve efforts to control inflation, the Bureau of Labor Statistics reported.
The producer price index, (PPI) a measure of prices paid to goods and services producers, increased 0.4% for the month, compared with analysts’ estimates for a 0.2% gain. On a 12-month basis, PPI rose 8.5%, down slightly from 8.7% in August.
Supply-chain inflation moderated slightly in September, although remaining elevated.
Goods inputs for Stage 4 intermediate demand, measuring the products purchased by industries primarily producing output sold to final demand, such as RV manufacturers, was flat in September. Year-over-year Stage 4 demand rose 8.4%, down slightly from 8.7% in August.
Stage 3 intermediate demand, measuring suppliers to Stage 4 producers such as RV manufacturers, fell 0.2% in July. Overall, demand rose 10.8% year-over-year, down from 12.1% the previous month.
Stage 2 intermediate demand, suppliers to Stage 3 suppliers, fell 0.1% in September after rising 6% in August. Overall, Stage 2 intermediate demand rose 18.6% year-over-year, although that was down from 20.4% in August.
Stage 1 goods demand rose 0.6% in September after falling 1.7% in August. Overall, demand rose 10.8% year-over-year, up from 10.4% in August.
Elevated supply-chain inflation is keeping final goods demand from moderating more, helping keep overall inflation levels high.
