Producer Prices in the US Rose Faster Than Expected

Producer Prices in the US Rose Faster Than Expected Producer prices in the US rose faster than expected. Producer prices index in the country rose more than anticipated, with monthly and annual increases of 0.4 percent in September. In the United States, the producer price index (PPI) increased faster than estimates in September, driven by increased food and hotel services costs. This marks the ongoing moderate recovery in pricing power after quarantine measures taken as part of the fight against the epidemic collapse the demand. The producer price index increased by 0.4 percent in September compared to the previous month. This data was recorded as 0.3 percent in August. Producer prices rose 0.4 percent year-on-year and registered for the first time since March in the plus zone. According to the median estimates of economists surveyed by Bloomberg, the expectation was that these data would increase by 0.2 percent on both a monthly and annual basis. The core PPI, excluding volatile food and energy prices, rose 0.4 percent for the second month in a row in September and increased by 1.2 percent compared to the same month of 2019. These data show that producers have had some success in increasing prices, as the economy has recovered from quarantine measures taken to combat the epidemic. On the other hand, with data released on Tuesday indicating a moderate rise in consumer prices, it looks like it will take some time for inflation to rise to the US Federal Reserve's (FED) target of 2 percent.