Wholesale price increases of US goods and services jumped higher for a third consecutive month, a sign that inflation's path downward remains a bumpy one, according to data released Wednesday by the Bureau of Labor Statistics.

The Producer Price Index, which measures the average price changes that businesses pay to suppliers, rose 2.2% for the 12 months ended in September. On a monthly basis, prices rose 0.5%, a slight cooldown from August's 0.7% increase.

Economists had projected an annual increase of 1.6% and a monthly uptick of 0.3%, according to Refinitiv consensus estimates.

When stripping out the more volatile components of food and energy, the core PPI rose 2.7% for the month and was up 0.3% for the year.

PPI is a closely watched inflation gauge since it captures average price shifts before they reach consumers and serves as a potential signal for the prices consumers ultimately end up paying.

This story is developing and will be updated.