Producer prices jump 1.3% in September, the biggest rise since 2022
Wholesale inflation ran at 6.3% a year as energy costs surged, a day after hot CPI.
Inflation · Thursday, October 15, 2026 · 10:15 AM ET
Wholesale prices rose 1.3% in September, more than double what economists expected, as a surge in energy costs spread through the pipeline. The Bureau of Labor Statistics said the Producer Price Index for final demand rose 6.3% from a year earlier (BLS, CNBC, CNN).
The numbers
Economists had expected a monthly gain of about 0.5% to 0.6% and an annual rise of 5.3% to 5.5%, depending on the survey (CNN citing FactSet, CNBC citing Dow Jones). CNBC and CNN said it was the largest monthly gain since March 2022 and the highest annual rate since December 2022. Core PPI, which leaves out food and energy, rose 0.7% on the month and 5% from a year earlier (CNBC, CNN).
Energy leads
Final demand goods prices rose 2.6% and services 0.8%, the BLS said. Energy goods jumped 10.8% on the month, with gasoline up 20.3% and No. 2 diesel up 21.0% (BLS). Benzinga called the goods increase the largest since the series began in December 2009. The BLS said almost half of the rise in processed goods for immediate demand was tied to diesel prices (CNBC). Trade services rose 1.4% and transportation and warehousing 3.4% (BLS). For the oil side of the story, see our IEA story and the morning oil report.
What it means for the Fed
The report came a day after the hotter-than-expected CPI. CNBC said fed funds futures now price roughly a 34% chance of a rate hike at the Fed's meeting later this month, up from under 18% a week ago, per CME's FedWatch tool. Reuters earlier had it at 27%. See our Fed odds story. Fed Chair Kevin Warsh is due to speak at the IMF meeting in Bangkok today (Morningstar).