US Producer Prices Hold Steady in September, Indicating Easing Inflation

The unchanged producer price index suggests inflationary pressures are subsiding, supporting potential Federal Reserve rate cuts.

The Producer Price Index (PPI) for September remained flat, following a 0.2% rise in August, contrary to forecasts of a slight increase.
Year-over-year, the PPI increased by 1.8%, marking the smallest rise since February 2021, and a decrease from the 1.9% increase in August.
Core wholesale prices, excluding volatile food and energy costs, rose by 0.2% in September and 2.8% over the year.
Consumer inflation also showed signs of cooling, with the Consumer Price Index rising 2.4% year-over-year, the lowest since early 2021.
The Federal Reserve is expected to continue cutting interest rates, with a 25 basis points reduction anticipated in November, as inflation trends align closer to its 2% target.