Inflation pressure continues to build, as U.S. September PPI data surges.

Driven by rising energy costs, the U.S. September Producer Price Index (PPI) exceeded expectations across the board, signaling that the impact of higher energy prices is spreading to all sectors of the U.S. economy. Data released Thursday by the U.S. Bureau of Labor Statistics showed that the September PPI rose 1.3% month-over-month and 6.3% year-over-year. Excluding food and energy, core PPI increased by 0.7% month-over-month and 5% year-over-year. The report noted that alongside rising fuel prices, underlying inflationary pressures in the U.S. remain persistent. With the November midterm elections just weeks away, the burden of rising living costs has become a central campaign issue. This data could also prompt Federal Reserve officials to continue raising interest rates in the coming months, particularly as another report released Wednesday showed a key U.S. consumer price metric rose faster than expected in September. The report also indicated that price pressures are expected to stay elevated in the coming months. A gauge measuring input price expectations over the next six months rose to its highest level since 2022.