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Wholesale inflation jumped last month by most in four years as gas prices soared
ABC News - Breaking News, Latest News and Videos • • general
Key Points:
- Wholesale inflation in the U.S. rose 6.3% year-over-year in September, driven largely by a 20% surge in wholesale gas prices, marking the biggest increase since December 2022.
- Monthly wholesale prices increased 1.3% from August to September, the largest gain since March 2022, with broad cost rises in energy, electricity, vegetables, shipping, and airfares.
- Core inflation, excluding food and energy, also accelerated, rising 0.7% month-over-month and 5% year-over-year, indicating persistent inflationary pressures beyond volatile sectors.
- Inflation has reduced Americans' real incomes, with average weekly paychecks shrinking after adjusting for inflation, contributing to widespread economic dissatisfaction among consumers.
- Rising inflation is creating political challenges for Republicans, notably impacting former President Trump’s approval ratings on economic issues, while the Federal Reserve is expected to maintain rates soon but likely hike again in December to combat inflation.
