Wholesale inflation jumped last month by most in four years as gas prices soared
Wholesale inflation in the U.S. rose significantly in September, driven largely by surging fuel costs. The data puts additional pressure on the Federal Reserve to consider interest rate hikes to combat persistent inflation.
Why it matters
Rising wholesale prices indicate potential future consumer price increases, impacting the broader U.S. economy and political landscape.
WASHINGTON -- Wholesale inflation rose more than expected last month on a big jump in fuel costs as rising prices become a bigger economic challenge for millions of Americans, and a growing political problem for Republicans in the upcoming midterm elections.
The Labor Department’s producer price index — which captures inflation before it reaches consumers — soared 6.3% in September from a year ago, up from 5.6% in August and the biggest increase since December 2022, the government said Thursday.
On a monthly basis, wholesale prices rose 1.3% from August to September, marking the largest increase since March 2022, after a 0.5% gain the previous month.
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