Prices paid to the US producers rose in Sept. at a moderate rate, implying a break from the supply chain pressures and materials shortages leading to increasing the cost of production.
Source: US Department of Labor
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The producer price index for final demand rose 0.5% from the prior month and 8.6% from a year earlier. The so-called core PPI, excluding volatile food and energy components, increased by 0.2% and was up 6.8% from a year ago.
The PPI has risen steadily this year as disruptions in supply networks and constraints that include shortages of materials and labor, increasing production costs. Companies have passed some costs to their customers that explain a recent increase in consumer prices.
The September PPI for final demand was at 0.5% month-over-month, down from a 0.7% increase last month.
Countries around the world are suffering from higher inflation. In China, a measure of prices paid to factories increased last month by the most since 1975.