U.S. wholesale inflation remained flat in September month-to-month, but increased 1.8% year-over-year, following a similar trend in consumer prices.

The Bureau of Labor Statistics released its monthly Produce Price Index report on Oct. 11, showing that the seasonally adjusted PPI for final demand increased 1.8% in September on an annual basis, up from a 1.7% gain in August.

September’s year-over-year figure was more than a 1.6% decrease estimate from economists, according to FactSet.

Monthly, the PPI was flat, following a 0.2% increase in August. This was driven by a 0.2% increase in final demand, offset by a o.2% decline in prices for final demand goods.

U.S. Producer Price Index Month-to-Month

U.S. Producer Price Index Year-Over-Year

The PPI tracks average price shifts at the wholesale level before they reach consumers.

However, core PPI — which excludes volatile food and energy categories — increased 0.1% in September month-to-month, following a 0.2% increase in August. Year-over-year, core PPI increased 3.2%, up from 2.4% in August.

U.S. Core Producer Price Index Month-to-Month

U.S. Core Producer Price Index Year-Over-year

The PPI report came a day after the Bureau issued its Consumer Price Index, which showed that consumer-facing inflation increased 2.4% in the 12 months ending September — the smallest annual gain since February 2021. While monthly CPI increased 0.2%, unchanged from August and July.

On Sept. 18, the U.S. Federal Reserve cut its benchmark interest rate to 4.75-5.0%, marking the first rate cut since March 2020. The Fed’s next Federal Open Markets Committee meeting is Nov. 6-7, when the central bank is widely expected to issue another rate cut.