Producer Prices See Biggest Jump in Four Years, Soaring 1.3% in September
Wholesale prices in the United States surged more than expected in September, pushed upward by surging gas prices and firmer services costs. The producer price index for final demand climbed 1.3 percent for the month, marking the largest monthly increase in four years and pushing annual wholesale inflation to 6.3 percent. The figures released by the Labor Department indicate that stubbornly high costs remain an economic challenge. While consumers continue to spend despite higher fuel costs vacuuming up more of their dollars, the hotter-than-expected inflation data adds to persistent economic pressures.
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- ✓ U.S. producer prices rose 1.3% in September, marking the biggest monthly increase in four years.
- ✓ Wholesale prices jumped 6.3% annually in September, representing the biggest gain since 2022.
- ✓ The producer price index surge was driven by energy, gasoline, and firmer services costs.
- ✓ The Labor Department released the producer price figures on Thursday.
What changed
The Labor Department released figures showing a 1.3 percent jump in the producer price index for final demand in September, driven by energy and fuel costs.
Live updates
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Producer Prices Jump 1.3% in September, Most in Four Years
Wholesale prices in the United States surged more than expected in September, pushed upward by surging gas prices and firmer services costs. The producer price index for final demand climbed 1.3 percent for the month, marking the largest monthly increase in four years and pushing annual wholesale inflation to 6.3 percent. The figures released by the Labor Department indicate that stubbornly high costs remain an economic challenge. While consumers continue to spend despite higher fuel costs vacuuming up more of their dollars, the hotter-than-expected inflation data adds to persistent economic pressures.
Why it matters
The sharp rise in producer prices highlights ongoing inflationary pressures within the American economy. High gas prices are intensifying the financial squeeze on households, creating a challenging environment for consumers and political consequences for Republicans facing midterm elections. The data underscores the difficulty of subduing inflation even as shoppers continue to power economic activity.
What is confirmed
- U.S. producer prices rose 1.3% in September, marking the biggest monthly increase in four years.
- Wholesale prices jumped 6.3% annually in September, representing the biggest gain since 2022.
- The producer price index surge was driven by energy, gasoline, and firmer services costs.
- The Labor Department released the producer price figures on Thursday.
What to watch next
- Whether consumer spending habits will change in response to ongoing wholesale inflation
- Future monthly producer price index releases to see if energy-driven price spikes persist
confidence 100%Sources used for this update (12)
- www.investing.com — Investing.com - Stock Market Quotes & Financial News
- CNN — Wholesale inflation jumped in September by most in four years
- CNBC — Wholesale prices jumped 6.3% annually in September, biggest gain since 2022
- Axios — The too-hot-for-comfort economy
- BBC — 'It's rough out here': Americans struggle to survive amid rising costs
- Barron's — Producer Prices See Biggest Jump in Four Years, Soaring 1.3% in September
- www.news4jax.com — US consumers are muscling through higher prices, but for how long? - News4JAX ,WJXT Channel 4
- www.denverpost.com — Wholesale inflation jumped last month by most in four years
- www.durangoherald.com — US consumers are muscling through higher prices, but for how long? - Durango Herald
- finance.yahoo.com — US Producer Prices Surge 1.3% in September as Jobless Claims ...
- www.audacy.com — Wholesale inflation jumped last month by most in four years as gas prices soared - Audacy,Radio & Podcasts
- www.marketreview.com — U.S. Producer Prices Jump 1.3%, Biggest Gain Since 2022
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