In September, prices paid to US producers surged by more than expected, suggesting inflationary pressures will take time to moderate and keep the Federal Reserve on its aggressive interest rate-hike path.

Labor Department data showed that the producer price index for final demand climbed 0.4 per cent from August, the first rise in three months, and was up 8.5 per cent from a year ago. Excluding the volatile energy and food components, the core PPI increased 0.3 per cent in September and advanced 7.2 per cent from a year earlier.

While supply chain disruptions have generally improved, costs surged for energy, foods and services. Two-thirds of the increase in the PPI was traced to services such as prices for travel and accommodation, food retailing, portfolio management and hospital inpatient care.

On Thursday, the government’s consumer price index is expected to show another solid advance, highlighting still-rapid and broad inflation. It will probably lead Federal Reserve policymakers to boost their benchmark interest rates by another 75 basis points (BP) next month.

Wednesday’s report showed goods prices increased by 0.4 per cent, reflecting higher energy and food costs. Food prices climbed 1.2 per cent. Excluding food and energy, the index of goods costs was unchanged. Services prices increased 0.4 per cent, the most in three months.