{"id":2063334,"date":"2023-10-11T12:12:02","date_gmt":"2023-10-11T16:12:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gasoline-food-drive-us-producer-prices-higher-core-inflation-cools\/"},"modified":"2023-10-11T12:14:08","modified_gmt":"2023-10-11T16:14:08","slug":"gasoline-food-drive-us-producer-prices-higher-core-inflation-cools","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gasoline-food-drive-us-producer-prices-higher-core-inflation-cools\/","title":{"rendered":"Gasoline and food drive up US producer prices, while core inflation cools."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">24<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fgasoline-food-drive-us-producer-prices-higher-core-inflation-cools%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2063334&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p><!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\"><br \/>\n<?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><html><body><\/p>\n<div class=\"entry-content\">\n<p>By\u2063 Lucia \u200cMutikani<\/p>\n<p>October 11, 2023 \u2013 8:44 AM PDT<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-2\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-2'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p>\n<p>WASHINGTON (Reuters) \u2013 U.S. producer prices increased more than expected in September amid higher costs for energy products and food, but underlying inflation pressures\u2063 at the factory gate continued \u2063to abate.<\/p>\n<p>The\u2062 mixed report from the Labor Department \u200don Wednesday was published ahead of the\u2063 release on Thursday of September\u2019s consumer price index data, which\u200d is expected to\u2062 show inflation moderated last month. The report is being closely watched for\u2064 clues on whether the Federal Reserve will raise interest rates against the backdrop of \u2062higher U.S. Treasury yields and conflict in the Middle East.<\/p>\n<p>\u201cThe Fed has not finished the\u2063 job and stamped inflation out completely yet, and if anything, policymakers have their work cut out for them as much of the inflation we see in producer prices is coming from\u200b food and energy prices that monetary policy has less effect on,\u201d said Christopher Rupkey,\u2062 chief economist \u200cat FWDBONDS in New York.<\/p>\n<p>The producer price index for final demand rose 0.5%\u2063 last month after accelerating\u2064 by an unrevised 0.7% in August.<\/p>\n<p>Economists polled by Reuters had expected the \u200bPPI would gain 0.3%. In the 12 months through September, the PPI increased 2.2%\u200d after advancing 2.0%\u200d in August.<\/p>\n<figure class=\"wp-block-image size-large\"><figcaption class=\"wp-element-caption\">Reuters Graphic<\/figcaption><\/figure>\n<p>The narrower measure of PPI, which \u200dstrips out food, energy and trade services components, gained 0.2% after\u200b rising \u200bby the same margin in August. The so-called core PPI increased 2.8% on a year-on-year basis in September after climbing \u200c2.9% in August.<\/p>\n<p>Wholesale goods prices increased\u2064 0.9%, with a 3.3% rise in the cost of energy products accounting \u2062for nearly three-quarters of the increase. Goods prices jumped 2.0% in August.<\/p>\n<p>Gasoline prices rose 5.4%, \u200bmaking up more than 40% of the increase in the cost of goods. There were \u2064also increases in the prices of jet fuel, electric power and diesel fuel. Food prices rebounded 0.9%, with processed young chicken\u2064 and meat costing more. But prices for fresh and\u2062 dry vegetables \u200ddeclined 13.9%. Wood pulp and utility natural gas prices also decreased.<\/p>\n<p>Excluding \u2062the volatile food and energy \u2064components, core goods prices edged up 0.1% for the second straight month. This mostly \u2062reflected the normalization\u2064 of supply \u200bchains, whose disruption \u2063fueled goods inflation\u200d in the\u2062 aftermath of the\u200d COVID-19 pandemic.<\/p>\n<p>Though core inflation is cooling, higher gasoline and\u200d food prices \u2063could hamper progress by\u200c raising the cost of other goods as well as\u200b causing consumers to expect inflation to rise.<\/p>\n<p>\u201cFrom\u2062 the Fed\u2019s perspective, cooler goods \u2063prices are a necessary, but not \u200dsufficient, condition\u200c in restoring price stability\u2064 right now,\u201d said Will Compernolle, macro strategist at FHN Financial in \u200bNew\u2062 York. \u201cThe\u2063 most concerning consumer inflation is in core services, which has a weaker connection \u2064with the\u200b PPI, and rising\u2062 energy prices pose \u2062an upside inflation risk via \u2064pass-through effects and \u200cinflation expectations.\u201d<\/p>\n<p>Stocks on Wall \u200dStreet were mixed. The\u200c dollar slipped against\u200d a basket of currencies. U.S. \u2063Treasury \u2063prices rose,\u2063 with the yield on\u2064 the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/gasoline-food-drive-us-producer-prices-higher-core-inflation-cools\/\" title=\"Gasoline and food drive up US producer prices, while core inflation cools.\">benchmark 10-year note pulling back<\/a> further\u2062 from 16-year \u2062highs following recent dovish remarks \u200dfrom Fed \u2062officials\u200b and the violence\u2063 in the Middle East.<\/p>\n<figure class=\"wp-block-image size-large\"><figcaption class=\"wp-element-caption\">Reuters\u200d Graphic<\/figcaption><\/figure>\n<p>SERVICES\u200b RISE MODERATELY<\/p>\n<p>Financial markets\u2062 overwhelmingly anticipate the\u2064 U.S. central bank will leave rates unchanged at its Oct. 31-Nov. 1\u2064 policy meeting, according to CME Group\u2019s FedWatch Tool<\/p>\n<p>Top ranking Fed officials\u200b indicated on Monday that soaring yields on long-term U.S. government bonds could steer the central bank away from further \u2062rate hikes. Since \u200cMarch 2022, the Fed has \u200draised its benchmark overnight interest rate by 525 basis points to the current 5.25%-5.50% range.<\/p>\n<p>\u201cThis\u200b is\u200d an important shift, but \u200bone \u2063perhaps markets are misinterpreting,\u201d said Alex McGrath, chief investment officer at NorthEnd Private Wealth in Greenville, South Carolina. \u201cThe problem, however, is if bonds rally aggressively from here, does this put a rate hike\u2062 back firmly on the table?\u201d<\/p>\n<p>The economy continues to forge ahead \u2063despite the hefty rate hikes, having created 336,000 jobs in\u200c September, \u2063the \u200bmost in eight months\u200c and almost double the amount economists had expected in a \u200dReuters survey.<\/p>\n<p>The cost of services increased 0.3% last month, boosted by a\u2063 13.9% surge in deposit services, after rising 0.2% in August. Prices for services less trade, transportation, and warehousing increased 0.3%. Trade \u200dservices, which measure changes in margins received\u200c by\u2063 wholesalers and retailers, climbed 0.5%. But the cost of transportation and\u200c warehousing services fell 0.4%.<\/p>\n<p>Hotel \u200dand motel accommodation prices rebounded 2.0%. \u2062Healthcare costs increased, with \u2062the cost of hospital inpatient care\u2063 rising 0.3% and\u200b outpatient care advancing 0.4%. But prices for airline \u2064tickets fell 2.1% and portfolio management fees dropped 0.5%. These components go into the calculation of the personal consumption\u200c expenditures (PCE) price indexes, \u200bthe inflation measures tracked by the Fed for its 2% target.<\/p>\n<p>Based on the PPI data, economists \u2063estimated that the core PCE price index rose 0.2% in September after edging\u200b up 0.1% in August. That would \u200cpush the annual increase\u200c in the core PCE \u2064price index to 3.7% in September from 3.9% in \u2062August.<\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">Reuters\u2062 Graphic<\/figcaption><\/figure>\n<p>Reporting by Lucia Mutikani; \u2063Editing by Chizu Nomiyama and Paul\u200d Simao<\/p>\n<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-3\" style=\"min-width: 320px; min-height: 50px; text-align: center;\">  \t<script>  \t\tgoogletag.cmd.push(function() { googletag.display('div-gpt-ad-1663871513696-art-3'); });  \t<\/script>  <\/div>\n<div class=\"ad-slot__ad-label\">Advertisement<\/div>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>IDF Reports claims \u200b40 Israeli \u2062Babies were\u2064 beheaded in a Kibbutz by\u2064 Hamas while the Israeli\u200c Army counterattacks<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>President Biden confirms Hamas is holding American citizens hostage in \u200bIsrael.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>The Biden Administration is downplaying the\u200b war on Israel\u2062 waged by Iranian-backed Hamas terrorists.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>One America\u2019s Jessamyn Dodd sits down with Lara Trump to discuss the latest Trump developments.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Samsung \u2064said its preliminary third-quarter\u2062 profit dropped \u2064by a smaller-than-expected 78%.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>The EU\u2019s industry chief gave Meta 24 hours to inform him of measures taken to counter the spread of disinformation on its platforms.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>EU antitrust regulators \u200dare \u2064asking Microsoft\u2019s users and rivals whether Bing \u2064should comply \u2063with new\u200c tough tech rules.<\/strong><\/p>\n<\/p><\/div>\n<div class=\"entry-content\">\n<p><strong>Shares of Arm Holdings rose 3% on Monday after a wave of \u200d\u201cbuy\u201d ratings from Wall Street analysts.<\/strong><\/p>\n<\/p><\/div>\n<p> rnrn  <\/p>\n<h2>What impact could \u200dthe rising producer price index have on the Federal Reserve&#8217;s decision on interest rates<\/h2>\n<p><span>  October<\/p>\n<p>This data indicates that the U.S. economy is continuing to experience inflationary pressures, particularly in\u2062 the\u200c energy and\u2064 food \u2062sectors. \u200dHowever, underlying inflation \u200cat the factory gate appears to be easing. \u2062This information is important\u2064 as it \u200dmay influence\u2063 the \u2064Federal Reserve&#8217;s decision on \u2064whether\u2062 to \u200draise interest rates. The report\u200c also highlights the challenges faced by\u2064 policymakers in\u200d addressing \u200binflation, as much of the price increases are driven by factors beyond the control of monetary \u200bpolicy.<\/p>\n<p>The \u2062producer price index for final demand increased by 0.5% in September, \u2063following a 0.7% rise in August. Economists had expected a smaller gain\u2063 of 0.3%. On a year-on-year basis, \u2063the PPI \u200cincreased by 2.2% in\u2063 September, slightly higher than the 2.0% increase in \u200dAugust.<\/p>\n<p>The narrower measure of \u200dPPI, which excludes food,<\/p>\n","protected":false},"excerpt":{"rendered":"<p>the expected release of the consumer price index (CPI) data on Thursday, which is likely to show a similar trend of moderate inflation.<\/p>\n","protected":false},"author":1911,"featured_media":2063335,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[542],"tags":[],"class_list":["post-2063334","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-oann"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2063334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1911"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2063334"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2063334\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2063335"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2063334"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2063334"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2063334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}