PRODUCER PRICE INDEX UP IN SEPTEMBER

From The New York Times:

The Producer Price Index, which measures wholesale prices paid by businesses, rose 1.1 percent in September after a 1.4 percent dip in August. The core rate of inflation, a less volatile gauge that excludes food and energy costs, rose 0.1 percent, a slight deceleration from the month before, the Labor Department said this morning.

Prices for raw materials, or so-called crude goods, continued to increase, with the core rate jumping 1.6 percent last month. Overall crude prices are up 11.4 percent from last September, compared with a 4.4 percent year-over-year increase in finished goods. These costs, located higher up the production pipeline, are typically passed on to consumers, signaling a likely increase in retail prices in the months ahead.