U.S. September Producer Price Index (PPI) up 0.3% month-on-month…in line with expectations

The U.S. September Producer Price Index (PPI) was in line with market expectations.

On the 25th (local time), according to the U.S. Department of Labor, the U.S. September PPI rose 0.30% month-on-month, matching expectations. The PPI also rose 2.7% year-on-year, in line with market expectations.

Producer prices are considered a leading indicator of consumer prices because they are reflected in final consumer goods prices after a certain period.

Bloomberg analyzed, "This producer price trend shows that companies are not fully passing tariff burdens on to prices," and "it appears they are limiting price increases out of concern for weakened consumer demand."

Core PPI, which excludes food and energy, rose only 0.1% month-on-month, below the market expectation of 0.3%. It rose 2.9% year-on-year.

Meanwhile, the ADP private employment indicator (ADP Employment Change) released that day recorded a decrease of 13,500, a weaker trend than the previous week (a decrease of 2,500).