Inflationary pressure continues to build as US September PPI data surges.

On October 15 that, amid rising energy costs, the US September producer price index broadly exceeded expectations, indicating that the impact of higher energy prices is spreading across various sectors of the US economy. Data released Thursday by the US Bureau of Labor Statistics showed the September PPI rose 1.3% month-over-month and 6.3% year-over-year. Excluding food and energy, core PPI increased 0.7% month-over-month and 5% year-over-year.

The report indicated that while fuel prices are climbing, underlying inflation pressures in the US remain persistent. With only a few weeks remaining before the November midterm elections, the burden of living costs has become a central campaign issue. The data may also prompt Federal Reserve officials to continue raising interest rates in the coming months, particularly after another report released Wednesday showed that a key September US consumer price indicator rose more than expected. The report also noted that price pressures are expected to remain elevated in the coming months. An index measuring expected input prices over the next six months reached its highest level since 2022. (Jin10)