Surging inflation collides with falling Treasury yields and Fed uncertainty

The selling followed a Labor Department report showing US producer prices jumped 1.3% in September, the biggest monthly increase since March 2022. Annual wholesale inflation accelerated to 6.3%, its highest level in nearly four years.

Core producer prices, excluding food and energy, rose 0.7% against expectations of 0.3%, taking the annual rate to 5%. The figures followed Wednesday’s consumer inflation reading of 3.7%, indicating that price pressures were spreading beyond the energy market.

Ricky Ho, chief investment officer of a single-family office, said the core reading was particularly concerning because it suggested businesses were facing broader cost…