Wholesale inflation rose in October to highest annual rate in nearly four years
Wholesale inflation in the U.S. reached its highest annual rate in nearly four years in October, driven largely by rising energy and food costs. The Producer Price Index rose 6.5% annually, signaling potential future price increases for consumers.
Why it matters
Rising wholesale costs often act as a leading indicator for consumer inflation, suggesting that the cost of living may continue to climb in the near term.
High energy prices continue to ripple through US supply chains, raising the costs for businesses and setting the stage for further increases in the coming months for American consumers. Wholesale inflation accelerated last month to its highest rate in nearly four years, Bureau of Labor Statistics data showed Friday. The Producer Price Index, a measurement of average price changes received by producers and manufacturers, rose 0.3% from the month before and 6.5% for the 12 months ended in October, the highest annual rate since November 2022. Excluding gas and food prices, core PPI rose 0.3% on a monthly basis and 5% annually, matching a rate last seen in January 2023. The Iran war and the resulting energy supply shock have sent gas and diesel prices markedly higher in recent months.
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