# September PPI Report Signals October Rate Hike

> September's hot producer prices push Fed to raise rates in October.
- Title: September PPI Report Signals October Rate Hike · 24/7 Wall St.
- Summary: September's hot producer prices push Fed to raise rates in October. September's producer price index rose 1.3% monthly and 6.3% annually, signaling an…
- Keywords: federal reserve, producer price index, september 2026, october rate hike, core ppi, consumer price index, treasury yields, fed policy meeting, September, PPI, Report, Signals
- Source: 24/7 Wall St. — https://247wallst.com/investing/2026/10/22/with-september-ppi-coming-in-red-hot-is-an-october-rate-hike-all-but-assured
- Author: Rich Duprey
- Published: 2026-10-22T16:40:44+00:00
- Read time: 1 min
- Topics: federal reserve, producer price index, september 2026, october rate hike, core ppi, consumer price index, treasury yields, fed policy meeting
## September PPI Report
Wholesale prices rose 1.3% month over month and 6.3% year over year in September 2026.
## Stronger CPI Reading
Consumer prices rose 0.6% monthly and 3.7% annually in September 2026, hitting a two-year high.
## Core PPI Exceeds Expectations
Core producer prices rose 0.7% monthly and 5.0% annually, above forecasts.
## Fed Policy Meeting Approaches
The Federal Reserve meets October 27-28, 2026, to decide on borrowing costs.
## Market Reaction
Short-term Treasury yields rose as the report suggests higher interest rates.
## October Rate Hike Likely
San Francisco Fed President Mary Daly says rate hikes are likely but not urgently needed.
## What Happens Next
The Fed may raise rates by 25 basis points in October, affecting borrowing costs.
## Key takeaway

September's producer price index rose 1.3% monthly and 6.3% annually, signaling an October rate hike.