September PPI came in hotter than anyone wanted.
Headline inflation +6.3% year-over-year. Consensus was expecting +5.4%. Prior month was revised up from +5.4% to +5.6%.
Core PPI +5.0% vs. +4.4% estimate and +4.8% prior.
This is the kind of print that makes the Fed's job harder. Markets were pricing in a slowdown. Reality just handed them a different story.
Producer prices feed through to consumer prices eventually. Sticky inflation isn't just a headline problem anymore—it's showing up in the pipeline.
Watch how this shifts rate expectations.
Headline inflation +6.3% year-over-year. Consensus was expecting +5.4%. Prior month was revised up from +5.4% to +5.6%.
Core PPI +5.0% vs. +4.4% estimate and +4.8% prior.
This is the kind of print that makes the Fed's job harder. Markets were pricing in a slowdown. Reality just handed them a different story.
Producer prices feed through to consumer prices eventually. Sticky inflation isn't just a headline problem anymore—it's showing up in the pipeline.
Watch how this shifts rate expectations.