The Labor Department reported on Tuesday the U.S. producer-price index (PPI) fell 0.3 percent m-o-m in September, following a gain of 0.1 percent m-o-m August. That was the largest decline in producer prices since January.

For the 12 months through September, the PPI rose 1.4 percent after a 1.8 percent advance in the previous month. That marked the smallest gain in PPI since November 2016.

Economists had forecast the headline PPI would increase 0.1 percent m-o-m and 1.8 percent over the past 12 months.

According to the report, the September decline in final demand prices reflected a 0.2 percent m-o-m decrease in prices for final demand services and a 0.4 percent m-o-m drop in prices for final demand goods.

Excluding volatile prices for food and energy, the PPI dropped 0.3 percent m-o-m and rose 2.0 percent over 12 months. Economists had forecast gains of 0.2 percent m-o-m and 2.3 percent y-o-y, respectively.