Producer Prices Jump 1.3% in September, the Largest Monthly Gain Since March 2022
The Labor Department's producer price index for final demand rose 1.3% in September and 6.3% from a year earlier. Here is what the release shows and what it does not.
By Christopher Salem · 3 min read
Prices that U.S. producers receive rose sharply in September. The Bureau of Labor Statistics said Thursday, Oct. 15, at 8:30 a.m. ET that its producer price index for final demand increased 1.3% on a seasonally adjusted basis, after gains of 0.5% in August and 0.2% in July (BLS release; dated PDF).
BLS said the monthly increase was the largest since March 2022. Before seasonal adjustment, final demand prices were up 6.3% over the 12 months ended in September, the biggest annual gain since December 2022.
| Measure | Change |
|---|---|
| Final demand, month (SA) | +1.3% |
| Final demand, 12 months (NSA) | +6.3% |
| Final demand goods, month | +2.6% |
| Final demand services, month | +0.8% |
| Less foods, energy and trade services, month | +0.5% |
| Less foods, energy and trade services, 12 months | +5.0% |
Where the increase showed up
Goods led, rising 2.6% for the month, while services rose 0.8%. A narrower measure that strips out foods, energy and trade services rose 0.5% after 0.3% in August, and was up 5.0% over 12 months. That measure excludes foods, energy and trade services, so it differs from other "core" definitions, including those that exclude only food and energy.
What it means for mortgage readers
The PPI measures what businesses receive, not what households pay, so it is not a direct reading on consumer inflation. It does add one more official data point to a month in which price pressure has been a central topic for bond investors.
No single report sets mortgage rates. Lenders price loans from mortgage-backed securities and their own costs, and markets weigh many inputs at once. Loan officers talking with borrowers today can point to the release as context, while avoiding any promise about where rates go next.
Readers who want to follow the next step can watch the Fed's own communications and upcoming consumer and spending data, each of which comes from a separate source with its own methodology.
Watch: September producer prices in 15 seconds
Transcript (on-screen text, no narration): Producer prices jump 1.3% in September, the largest monthly gain since March 2022. Final demand rose 1.3% in September, seasonally adjusted. Over the 12 months ended September, final demand rose 6.3%, the largest annual increase since December 2022. Final demand less foods, energy and trade services rose 0.5%. What to watch (hypothesis): whether hotter producer prices keep pressure on Treasury yields and mortgage rates. An open question, not a reported rate move. Source: U.S. Bureau of Labor Statistics, PPI release Oct. 15, 2026, 8:30 a.m. ET.
Photo: Frances Perkins Building, headquarters of the U.S. Department of Labor, whose Bureau of Labor Statistics publishes the Producer Price Index. Official photograph by the US Department of Labor (2011), via Wikimedia Commons, licensed CC BY 2.0; cropped.
