From 24/7 Wall St. · Rich Duprey · · 1m
September PPI Report Signals October Rate Hike
September's hot producer prices push Fed to raise rates in October.
In brief
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 October rate hike. Originally reported by 24/7 Wall St..
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.
The main idea
September's producer price index rose 1.3% monthly and 6.3% annually, signaling an October rate hike.
