EL7.AI
Macro EconomyMedium•22 October 2026•
3 min read

U.S. producer prices jump 1.3% in September, the most since March 2022

Key Facts

1Final demand producer prices rose 1.3% month on month and 6.3% year on year in September.
2Gasoline prices in the producer price index jumped 20.3% in September.
3Final demand energy prices rose 10.8% in September.
4The index excluding food, energy and trade services rose 5.0% year on year in September.
5Markets were pricing in a roughly 30% chance of an October rate increase at the time of Reuters' coverage of the report's release.

The U.S. producer price index for final demand rose a seasonally adjusted 1.3% in September, according to a Bureau of Labor Statistics report released on the morning of October 15, 2026, ahead of the Federal Reserve's next meeting. The increase exceeded the 0.5% monthly rise forecast by economists polled by Reuters. The bureau said the monthly increase was the largest since March 2022, when the index rose 1.7%. Producer prices rose an unadjusted 6.3% from September a year earlier. The annual increase accelerated from 5.6% in August, according to Associated Press coverage of the data. September's annual reading was the highest since December 2022, the news agency reported.

September's jump followed monthly increases in final demand prices of 0.5% in August and 0.2% in July, according to the Bureau of Labor Statistics. Within the September reading, final demand goods prices rose 2.6% during the month. Energy was the main driver of that increase, with the bureau saying final demand energy prices "jumped 10.8%." Gasoline was a prominent contributor to the rise in goods prices, posting a monthly increase of 20.3% in the producer price index. Final demand services prices also increased, rising 0.8%, with trade services margins contributing to the gain. The final demand index excluding food, energy and trade services rose 0.5% in September, according to the official release. That index rose 5.0% from the same month a year earlier.

The developments follow the Federal Reserve's decision to raise interest rates by 1/4 percentage point at its September meeting, according to the central bank's monetary policy statement. The decision set the target range for the federal funds rate at 3-3/4% to 4%. In its coverage on the day the producer price report was released, Reuters reported that financial markets were pricing in a roughly 30% chance of a rate increase at the October meeting. That pricing was based on CME Group's FedWatch tool at the time of the data release on October 15. In the bond market, Reuters said in the same coverage that "U.S. Treasury yields fell" during trading.

The Federal Reserve holds its next meeting on October 27 and 28, according to the official Federal Open Market Committee calendar. The advance durable goods report for September is due on the meeting's opening day, according to the U.S. Census Bureau's schedule. The bureau scheduled the report's release for October 27, 2026, at 8:30 a.m. The Conference Board releases its next consumer confidence reading the same day at 10 a.m. U.S. Eastern time, according to its announced release schedule. After the Fed meeting, the October producer price reading is due on November 13, 2026, according to the Bureau of Labor Statistics calendar.