New data from the U.S. Labor Department reveals mixed signals regarding inflation trends. While energy and food costs rose in September, certain components of the Federal Reserve’s preferred inflation measure saw stability compared to previous months. Notably, the Producer Price Index (PPI) increased by 0.3% in September, following a 0.1% decline in August, matching economist expectations. However, excluding food and energy, the core PPI rose by 2.6% year-over-year, marking a mild increase since July 2024. This data is expected to influence the calculation of the Personal Consumption Expenditures (PCE) Price Index, a crucial indicator for the Fed’s 2% inflation target. While the impact on Federal Reserve policymakers is limited, this data will be used to assess inflation trends in the coming months. Economists are closely watching the PPI and CPI data for insights into PCE index estimations, with expectations of a slight increase in core PCE for September. The official PCE inflation report is scheduled for release on December 5th; however, the latest available data will still guide policy decisions at the Federal Reserve meeting on December 9-10.