September Producer Prices Jump 6.3%, Topping Forecasts as Core PPI Hits 5.0%

Wholesale inflation ran hotter than expected in September. The producer price index rose 6.3% from a year earlier, above the 5.5% economists had forecast, while core producer prices climbed 5.0%.

The report adds to a run of firm inflation readings that has kept investors focused on how the Federal Reserve will respond. Higher input costs can squeeze margins for consumer-facing and transport companies if they cannot pass them on to customers.

Markets nonetheless closed higher on the day, helped by a decline in Treasury yields, with the 10-year yield falling about 10 basis points to roughly 5.09%, according to market recaps.