Can we expect September’s producer prices to mirror the surprising surge seen in August?

The eagerly anticipated Producer Price Index (PPI) report for September, which is a key economic indicator, will be released by the Bureau of Labor Statistics on Wednesday. It will be followed by the widely-followed Consumer Price Index (CPI) report the next day. Both reports are of heightened importance as investors analyze monetary policy outlook. In August, producer prices increased by 0.7% compared to expectations of a 0.4% rise, driven by a significant spike in energy costs. Excluding volatile components, the core producer price index rose by 0.2% in August. Economists predict a more modest 0.3% increase in the PPI for September, along with a steady annual rate at 1.6%. The core PPI is projected to grow by 0.2% and reach an annual rate of 2.3%. When the previous PPI report was released in August, it received a positive market response, with stock markets and Bitcoin performing well, the U.S. dollar strengthening, and bond prices declining.