Inflation hit businesses even harder than consumers last month
US producer prices surged in September, marking the largest increase in four to four-and-a-half years. The Producer Price Index showed wholesale inflation jumped to 6.3% on an annual basis, with prices rising 0.6% from August. This spike hit businesses harder than consumers, who saw the Consumer Price Index accelerate to 3.7% year-over-year. Soaring gas, diesel, and jet fuel prices drove half of the September increase, though inflation is now distributed broadly across the economy rather than remaining confined to energy sectors.
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- ✓ US producer prices saw their largest gain in over four years.
- ✓ The Producer Price Index rose 0.6% from August to September.
- ✓ Annual wholesale inflation reached 6.3% in September.
- ✓ Consumer price inflation accelerated to 3.7% year-over-year.
What changed
September producer price data shows wholesale inflation reached 6.3%, the worst level since late 2022.
Live updates
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US Wholesale Inflation Hits Highest Level in Over Four Years
US producer prices surged in September, marking the largest increase in four to four-and-a-half years. The Producer Price Index showed wholesale inflation jumped to 6.3% on an annual basis, with prices rising 0.6% from August. This spike hit businesses harder than consumers, who saw the Consumer Price Index accelerate to 3.7% year-over-year. Soaring gas, diesel, and jet fuel prices drove half of the September increase, though inflation is now distributed broadly across the economy rather than remaining confined to energy sectors.
Why it matters
Wholesale inflation often serves as a leading indicator for future consumer price trends. This economic shift occurs as voters engage in early voting for midterm elections. The current price volatility follows the start of a US and Israeli war on Iran in February.
What is confirmed
- US producer prices saw their largest gain in over four years.
- The Producer Price Index rose 0.6% from August to September.
- Annual wholesale inflation reached 6.3% in September.
- Consumer price inflation accelerated to 3.7% year-over-year.
- Rising gasoline prices contributed to the increase in producer prices.
Still unconfirmed
- Trump administration efforts to lower prices have failed to make a meaningful dent in rising costs.
- Oil and gas prices have soared since the US and Israel launched a war on Iran in February.
What to watch next
- Release of Q3 GDP data at the end of the month
- Midterm election results
- Future Consumer Price Index reports
confidence 90%Sources used for this update (11)
- Bloomberg.com — US Producer Prices Rise by Most in More Than Four Years
- AP News — Wholesale inflation jumped last month by most in four years as gas prices soared
- NBC News — Businesses were hit even harder by inflation last month than consumers
- Reuters — US producer prices post largest gain in 4-1/2 years; expensive gasoline boosts retail sales
- The Atlantic — America’s Latest Inflation Check-In Doesn’t Look Good for Trump
- www.nbcnews.com — Businesses were hit even harder by inflation than consumers
- finance.yahoo.com — Buying dip in tech market, Anthropic's "Public Benefit" fund, and Musk's SpaceX pledge
- www.democraticunderground.com — Inflation hit businesses even harder than consumers last month - Democratic Underground Forums
- biztoc.com — Inflation hit businesses even harder than consumers last month
- article.wn.com — Businesses were hit even harder by inflation last month than ...
- wolfstreet.com — Businesses Slammed by 6.3% PPI Inflation, Worst since 2022 ...
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