US producer prices exceeded expectations, with energy and core categories rising simultaneously

(1) The US Producer Price Index rose by 1.3% month-on-month, significantly exceeding the market expectation of 0.5%. Excluding food and energy, it increased by 0.7%, also above the expected 0.3%. (2) After further excluding trade services, the core index was up 0.5% month-on-month, indicating that price pressure is not only coming from the energy sector. (3) The year-on-year growth rate did not ease as expected, but instead rose notably, with the overall year-on-year figure climbing to 6.3% from the previous 5.6%. (4) Excluding food and energy, the year-on-year figure rose to 5.0%, with the previous value revised to 4.8%. (5) Excluding food, energy, and trade services, the year-on-year figure also climbed to 5.0%. (6) Diesel prices rose 21.0% month-on-month, following a 23.6% increase in the previous month, with the year-on-year growth reaching 115.2%, becoming a key factor driving the overall increase. (7) Other energy categories also showed strong performance, with gasoline rising 20.3% month-on-month, natural gas condensate up 14.6%, and home heating oil up 18.8%. (8) The overall energy index increased by 10.8%, contributing over 80% of the total producer price gain. Some energy costs may be passing through the supply chain to other sectors, and the market is watching the extent of subsequent inflationary pressure spread.