US PPI Posts Biggest Gain Since 2022 as Energy Shock Continues to Spread

US producer prices rose at their fastest pace in more than four years in September, as higher energy costs continued to work their way through the economy. The report showed core inflation pressures remained firm even as fuel prices climbed. The data could also keep Federal Reserve officials on a path of further rate hikes in the coming months, especially after another report on Wednesday showed a key consumer price gauge rose more than expected in September. US Treasuries extended their gains after the data was released, while US stocks fell in early trading. For policymakers, a key question is whether the energy shock is starting to pass through to prices of other goods and services. The PPI report showed energy prices rose 10.8% in September, and transportation and warehousing prices rose 3.4%, the largest increase since April. Food prices rose 1.2%. (Caixin)