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Wholesale Inflation Jumps to Levels Last Seen in 2022
Newser • • business
Key Points:
- The Labor Department reported a 6.3% year-on-year increase in the producer price index (PPI) for September, the largest rise since December 2022, driven mainly by soaring fuel costs.
- Wholesale prices rose 1.3% from August to September, more than double economists' expectations, with transportation and warehousing costs up 3.4% and 16% higher than a year ago.
- Rising diesel fuel prices, now averaging $6.32 per gallon, are increasing shipping and manufacturing costs, which in turn are pushing up food prices and impacting prices across the economy.
- The inflation data adds pressure on the Federal Reserve to continue raising interest rates, as core prices excluding food and energy rose 0.7% monthly and 5% annually, exceeding previous months.
- These inflation challenges pose economic difficulties for American consumers and political challenges for Republicans ahead of the midterm elections.
