PPI SHATTERS EXPECTATIONS , PILING MORE RATE HIKE PRESSURE ON THE FED

What happened: The September Producer Price Index rose far more than economists expected, lifting the odds of another Federal Reserve rate hike. The Bureau of Labor Statistics said the monthly gain was the largest since March 2022. Key numbers: PPI rose 1.3% in September versus a 0.6% forecast, after Why it matters: The data followed a hotter-than-expected core CPI reading, and Chris Zaccarelli of Northlight Asset Management said the Fed may have no choice but to raise rates again this year. He expects a hawkish December move of 25 bps, not an October hike, citing the midterm elections.

The September Producer Price Index rose far more than economists expected, lifting the odds of another Federal Reserve rate hike. The Bureau of Labor Statistics said the monthly gain was the largest since March 2022.

The data followed a hotter-than-expected core CPI reading, and Chris Zaccarelli of Northlight Asset Management said the Fed may have no choice but to raise rates again this year. He expects a hawkish December move of 25 bps, not an October hike, citing the midterm elections.