Washington, Oct 15 (AP) Wholesale inflation rose more quickly than expected last month on a big jump in fuel costs, a sign that stubbornly rising prices remain an economic challenge for consumers and a political problem for Republicans in the midterm elections.
The Labour Department’s producer price index — which captures inflation before it reaches consumers — soared 6.3 per cent in September from a year ago, up from 5.6 per cent in August and the biggest increase since December 2022, the government said Thursday.
On a monthly basis, wholesale prices increased 1.3 per cent from August to September, the largest since March 2022, after a 0.5 per cent increase the previous month.
Thursday’s data amplifies the better-known consumer price index, released Wednesday, which also accelerated in September as gas prices jumped. A broad range of goods and services also got more expensive. Both inflation reports raise pressure on the inflation-fighters at the Federal Reserve to hike their key interest rate. Inflation has now topped the central bank’s 2 per cent target for five and a half years.
Excluding the volatile food and energy categories, core prices rose 0.7 per cent from August to September, up sharply from 0.2 per cent in the previous month. Compared with a year ago, core prices rose 5 per cent, up from 4.6 per cent in August.
(PTI News)
