In September, inflation exceeded expectations with a 0.2% increase, raising the annual rate to 2.4%. This rise was driven by higher food prices (0.4%) and shelter costs (0.2%), despite a 1.9% decline in energy prices. Other factors contributing to inflation included increased costs for used and new vehicles, medical care, and apparel.

‍

Meanwhile, the Producer Price Index (PPI) fell below expectations. U.S. factory gate prices remained flat, missing the forecasted 0.1% rise. Service costs increased 0.2%, led by deposit services, while goods prices dropped 0.2%, largely due to a 5.6% fall in gasoline prices. Annual producer price inflation eased to 1.8%, while core PPI increased 2.8%.

‍