With an increase in prices for services offsetting a modest drop in prices for goods, the Labor Department released a report on Wednesday showing producer prices in the U.S. rose in line with economist estimates in the month of September.
The Labor Department said its producer price index for final demand increased by 0.2 percent in September after edging down by 0.1 percent in August. Economists had expected prices to rise by 0.2 percent.
The rebound by the headline index came as the index for final demand services climbed by 0.3 percent in September after slipping by 0.1 percent for two straight months.
Prices for transportation and warehousing services led the way higher, surging up by 1.8 percent in September after falling by 0.6 percent in August.
The report said prices for services less trade, transportation, and warehousing also rose by 0.3 percent, while prices for trade services inched up by 0.1 percent.
The Labor Department said over one-third of the advance in prices for final demand services can be traced to a 5.5 percent spike in prices for airline passenger services.
The increase in prices for services was partly offset by a 0.1 percent dip in prices for goods, which came in unchanged in the previous month.
Leading the modest decrease in September, prices for energy and food fell by 0.8 percent and 0.6 percent, respectively.
Excluding the drops in prices for food and energy, core producer prices still rose by 0.2 percent in September after slipping by 0.1 percent in August. The uptick in core prices also matched economist estimates.
The report also said the annual rate of producer price growth slowed to 2.6 percent in September from 2.8 percent in August, while the annual rate of core producer price growth accelerated to 2.5 percent from 2.3 percent.
On Thursday, the Labor Department is scheduled to release a separate report on consumer price inflation in the month of September.
Consumer prices are expected to rise by 0.2 percent in September, matching the increase in August. Core consumer prices are also expected to edge up by 0.2 percent.
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