The US producer price index rose 0.2% in September, as expected

US producer prices rose 0.2% in September, reversing an unexpected drop in August and meeting expectations.

Higher prices for services offset a slight decline in property prices. Final demand prices fell 0.1% in August. From September to September, the producer price index rose 2.6%, slightly less than expected.

Economists polled by Reuters forecast a 0.2% increase in the PPI in September and 2.8% year on year.

A key indicator of the underlying pressures on producer prices excluding food, energy and trade services rose 0.4% last month, the largest increase since January. The so-called basic PPI was up 0.1% in August.

In the last 12 months of September, the core PPI rose 2.9%, as the previous month.