US producer inflation annually rises 2.2% in September, largest increase since April

By Ovunc Kutlu

ISTANBUL (AA) - US producer inflation annually rose 2.2% in September, marking the largest year-on-year increase since April this year, according to official figures released on Wednesday.

The producer price index (PPI), which measures changes in the price of goods and services from a producer perspective, came in much higher than market estimates of a 1.6% increase.

The annual increase in August was revised up to 2%, from 1.6%, according to the figures.

On a monthly basis, the PPI saw a gain of 0.5% in September, also coming higher than expectations of a 0.3% gain.

The monthly figure for August was unchanged at an increase of 0.7%.

"The index for final demand goods moved up 0.9 percent in September, the third consecutive increase," the Labor Department said in a statement. "The index for final demand services advanced 0.3 percent in September following a 0.2-percent rise in August."

Core producer prices, which exclude food, energy and trade, increased 0.2% in September after rising 0.2% in the month before.

Core PPI in September increased 2.8% on an annual basis, following a gain of 2.9% in August.