September US Producer Price Index (PPI) data has been released. The headline PPI came in at 2.7% year-over-year, slightly above expectations (2.6%). However, the core PPI (excluding food and energy) surprised positively by coming in at 2.6%, falling short of expectations (2.7%). This data suggests that inflationary pressures on the producer side remain limited, with volatility in energy prices, in particular, pushing the headline figure higher. A cooling in the core indicator, which the Fed closely monitors, could further bolster interest rate cuts. Markets responded to the data with cautious optimism.