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Wholesale inflation surged in September, keeping affordability in focus ahead of the midterms
CNN • • general
Key Points:
- US wholesale inflation surged in September, with the Producer Price Index (PPI) rising 1.3% monthly and 6.3% annually, marking the highest levels in over four years and exceeding economists' expectations.
- Energy prices, influenced by geopolitical tensions including the Iran conflict, were a major driver, accounting for 80% of the 2.9% increase in goods prices, the largest monthly rise since 2009.
- Core PPI, excluding food and energy, also rose 0.7% monthly and 5% annually, its highest since January 2023, indicating broader inflationary pressures beyond energy costs.
- Retail sales growth slowed in September to 0.8%, with a minimal 0.2% increase excluding gas station purchases, and inflation-adjusted sales showed even weaker consumer spending momentum.
- Rising gas prices are increasingly impacting household budgets, with the cumulative extra spending on gasoline outweighing tax refund gains, contributing to a slowdown in retail sales growth ahead of the holiday season.
