Quick Review of U.S. September PPI Data

In September, the U.S. PPI increased by 2.7% year-on-year, higher than the expected value of 2.6%, with the previous value revised from 2.6% to 2.7%; the U.S. core PPI increased by 2.6% year-on-year, with an expected growth of 2.7%, and the previous value revised from 2.8% to 2.9%. The PPI report shows that service costs remained unchanged after a decline a month ago. In the service sector, the profit margins for machinery and equipment wholesale decreased, while the profit margins for food wholesale increased. The cost of air passenger services also rose. Businesses are concerned that rising costs may drive away customers, thus limiting the extent of price increases to offset the impact of increased import tariffs. This report, originally scheduled for release on October 16, was postponed to Tuesday due to the government shutdown