September US Producer Price Index Rises as Expected

BY MT Newswires | ECONOMIC | 11/25/25 08:47 AM EST

08:47 AM EST, 11/25/2025 (MT Newswires) -- The US Producer Price Index rose by 0.3% in September following a 0.1% decrease in August, as expected in a survey compiled by Bloomberg as of 7:35 am ET.

Energy prices jumped by 3.5% in the month, while food prices rose by 1.1%.

After excluding food and energy prices, core PPI rose by 0.1%, below the 0.2% gain expected and following a 0.1% drop in the previous month.

PPI was up 2.7% year-over-year in September, the same as in August, while core PPI rose by 2.6% year-over-year, down from 2.9% in the previous month.

The monthly producer price index, or PPI, reported by the Bureau of Labor Statistics measures the index level of prices received by producers for products such as energy, food, vehicles, and services. The core measure, excluding the volatile food and energy components, is a measure of underlying inflation.

Sharply higher prices are a sign of demand, but an increase at the producer level without a pass-through to the consumer level would suggest smaller profits at the retail level. As a result, the stock reaction depends on the movements at both levels. Higher inflation is generally a negative for bonds.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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