U.S. producer prices increased 0.2% in September, in line with expectations, while a revision to wholesale inventory estimates for August showed the biggest jump in nearly five years, beating forecasts.

A rise in services prices offset a slight drop in prices for goods, including a 3.5% drop in gasoline prices. Final demand prices had fallen 0.1% in August. In the 12 months through September, the producer price index rose 2.6%, slightly less than expected.

Data on producer prices feed into inflation indicators watched by the Federal Reserve, which has been raising rates in hopes of keeping a price index based on personal consumption expenditures near the central bank's 2% target.

The rise in wholesale inventories was slightly above the 0.8% expected by the market. The component of inventories that feeds into estimates of GDP growth rose 0.7%.

After declining inventories subtracted more than a percentage point from GDP growth in the April-June quarter, the market expects investments in inventories to support GDP going forward.

A key gauge of underlying producer price pressures that excludes food, energy and trade services rose 0.4% last month, the largest increase since January. The so-called core PPI had risen 0.1% in August.

In the 12 months through September, the core PPI rose 2.9%, the same as the month before.

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