US PPI flat in September suggests further stabilization of inflation
Institutional analysis pointed out that the U.S. PPI was flat in September, indicating that the outlook for inflation remains favorable, supporting the view that the Federal Reserve will cut interest rates again next month.The PPI was dampened by the decline in gasoline prices in September, and inflation further stabilized. This comes after data released yesterday showed that the CPI was slightly higher than expected in September, driven by higher prices for housing, food and clothing. Physician care and hospital outpatient costs were virtually unchanged, while airfare prices rebounded sharply, according to the report. Portfolio management fees rose slightly. The cost of services rose 0.2 percent, a slowdown from the previous month's 0.4 percent increase. Wholesale food prices rose 1 percent, the largest increase since February, while energy prices fell 2.7 percent.
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