Wholesale inflation surges as fuel costs spike sharply

Summarised from 2 outlets · Updated 15 Oct, 14:02 · Archive

US wholesale inflation rose 6.3% in September, the largest increase in nearly four years, driven by surging fuel costs.

The Labour Department's producer price index, which measures wholesale inflation before it reaches consumers, soared 6.3% in September compared with a year earlier, up from 5.6% in August. On a monthly basis, wholesale prices increased 1.3% from August to September, the largest monthly increase since March 2022, following a 0.5% rise the previous month. The jump was driven by a sharp rise in fuel costs, with a broad range of goods and services also becoming more expensive.

Core prices, excluding the volatile food and energy categories, rose 0.7% from August to September, up sharply from 0.2% in the previous month. Compared with a year ago, core prices rose 5%, up from 4.6% in August. The data followed Wednesday's release of the consumer price index, which also showed acceleration in September as gas prices jumped.

Both inflation reports add pressure on the Federal Reserve to raise its key interest rate. Inflation has now exceeded the central bank's 2% target for five and a half years.

How it is being reported

• Wholesale inflation jumped last month by most in four years as gas prices soaredWholesale inflation rose more quickly than expected last month on a big jump in fuel costs, a sign that stubbornly rising prices remain an economic challenge for consumers and a political problem for Republicans in the midterm elections.Clickorlando · 15 Oct, 13:34
• Wholesale inflation jumped last month by most in four years as gas prices soaredWholesale inflation rose more quickly than expected last month on a big jump in fuel costs, a sign that stubbornly rising prices remain an economic challenge for consumers and a political problem for Republicans in the midterm elections.News4Jax · 15 Oct, 13:34

In this story: United States · Federal Reserve · Labour Department

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