The producer price index for finished goods jumped again last month. The 1.1% increase (2.2% y/y) followed a 1.7% August rise and beat expectations for a 0.7% gain. Conversely, the unchanged level (2.3% y/y) of prices excluding food & energy surprised expectations for a 0.2% increase. Higher energy prices provided the lift to September's overall index with a 4.7% gain (-7.9% y/y). Gasoline prices jumped 9.8% (8.5% y/y) and home heating oil prices gained 3.1% (6.8% y/y). Food prices were relatively tame and rose 0.2% (1.8% y/y). That increase was led by a 5.4% y/y rise in prices for fresh fruits and a 9.4% y/y gain in meat prices. These strengths were offset by a 15.9% decline in vegetable prices.

Finished consumer goods prices jumped 1.6% (2.4% y/y). Excluding food & energy, consumer goods prices rose 0.2% (3.0% y/y). Within the components, men's apparel prices rose 3.2% y/y while women's clothing costs increased 0.2% y/y. Household appliance prices gained 5.1% since September of 2011, furniture prices rose 1.7% y/y and passenger car prices increased 1.6% y/y. Capital equipment prices slipped 0.1% last month (+1.7% y/y).

Intermediate goods prices jumped 1.5% (-0.1% y/y) as energy costs spiked 4.3% (0.7% y/y), about as they did in August. Also strong were food prices with a 2.0% rise (5.6% y/y). Core-intermediate prices rose 0.6% but still were off 1.2% y/y. Crude goods prices gained 2.8% (-2.6% y/y) last month bolstered by a 1.6% gain (-8.8% y/y) in prices less food & energy. Energy prices jumped 4.4% (-6.1% y/y) while food prices increased another 1.6% (5.2% y/y) due to drought conditions in the Midwest. Prices less food & energy gained 1.6% and were down 8.8% over the prior twelve months.

The PPI data are contained in Haver's USECON database with further detail in PPI and PPIR. The expectations figures are available in the AS1REPNA database.