Markets fully priced in an October Federal Reserve rate hike after August producer inflation data delivered mixed signals ahead of next week’s policy meeting. Annual PPI rose 5.4%, above market expectations of 5.3%, while core PPI increased 0.2% month over month, below the expected 0.3%. The report came one day before the latest CPI data, which is expected to show relatively moderate core inflation. Some Federal Reserve officials have indicated the Sept. 15-16 rate decision may depend on this week’s inflation reports, while Chair Waller said last month that the Fed “still has work to do” if policymakers cannot be confident underlying inflation trends are improving significantly. Renewed oil price gains amid ongoing U.S.-Iran hostilities could further complicate the outlook.