U.S. producer prices post biggest gain in 4 1/2 years - Honolulu Star-Advertiser
U.S. producer prices saw their largest increase in over four years in September, signaling that inflation is broadening beyond energy costs. The data complicates the Federal Reserve's interest rate strategy as consumer spending shows signs of slowing.
Why it matters
Rising producer prices often precede consumer inflation, creating economic uncertainty and influencing monetary policy decisions.
A driver walks away from a row of parked semis at a truck stop in Dunnigan, Calif., on Sept. 28. U.S. producer prices increased by the most in 4-1/2 years in September amid rising costs for goods and services, the latest indication of inflation broadening out beyond energy products.
WASHINGTON >> U.S. producer prices increased by the most in 4-1/2 years in September amid rising costs for goods and services, the latest indication of inflation broadening out beyond energy products.
The report from the Labor Department today also showed fairly large rises last month in key components that go into the calculation of the main inflation measures tracked by the Federal Reserve for its 2% target, leading some economists to still anticipate another interest rate increase this month.
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