WASHINGTON, Oct. 15 (TodayViralUSA) — U.S. wholesale prices jumped in September at the fastest annual pace in nearly four years, the Labor Department said Thursday, the second hotter-than-expected inflation report this week and a fresh political headache for Republicans weeks before the midterms.
The Producer Price Index rose 1.3% from August and 6.3% from a year earlier, according to the Bureau of Labor Statistics. Economists surveyed by FactSet had expected gains of about 0.5% month over month and 5.3% year over year. August’s annual PPI rate was 5.6%.
September’s monthly increase was the largest since March 2022; the annual rate was the highest since December 2022, CNN Business reported.
Energy drives the surge
Energy costs — lifted by geopolitical supply shocks, including the war with Iran — accounted for about 80% of a 2.9% leap in goods prices, the largest monthly goods jump in BLS data dating to 2009, according to CNN’s account of the report.
Core PPI, which excludes food and energy, still rose 0.7% on the month, the fastest in five months, lifting the annual core rate to 5%, its highest since January 2023. Fuel-sensitive transportation categories, including airfares, were a major factor in that core reading, economists said.
The PPI report landed a day after September’s Consumer Price Index showed overall inflation at a 3.7% annual rate, with gasoline a major driver. Together, the readings keep affordability at the center of the midterm campaign.
Retail sales cool as gas costs bite
A separate Commerce Department report Thursday showed retail sales rose 0.8% in September after a 1.3% gain in August. Excluding gas stations, sales rose just 0.2%. Economists noted that higher pump prices are starting to crowd out other spending heading into the holiday season.
Financial markets were mixed after the data: the S&P 500 and Nasdaq slipped while the Dow rose, as investors also weighed a drop in AI-related stocks and moved into bonds, CNN reported.
Sources & Credits
- CNN Business: Wholesale inflation surged in September, keeping affordability in focus ahead of the midterms
- Associated Press: Soaring energy prices send inflation upward rapidly at the wholesale level
- Transport Topics: Wholesale inflation rises 6.3% as gas prices soared
Image: Harrison Keely, CC BY 4.0, via Wikimedia Commons (fuel pump, Greenville, S.C.).
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