The Bad News on Inflation Just Keeps Coming
US wholesale inflation rose to an annual rate of 6.3% in September, the largest gain since December 2022. The producer price index increased 1.3% from August to September, a monthly jump roughly twice what analysts expected and the highest since March 2022. Rising gasoline prices drove this increase, fueling fears of further interest rate hikes. While President Trump maintains the economy is performing well, the data suggests persistent price elevation as midterm elections approach. Federal Reserve Chair Kevin Warsh remains committed to reducing inflation to 2%.
Listen to Live Briefing
Real-time synthesized voice briefing · Live Feeds Desk
- ✓ Annual wholesale inflation reached 6.3% in September.
- ✓ The producer price index rose 1.3% between August and September.
- ✓ The Federal Reserve increased interest rates last month for the first time in three years.
- ✓ Inflation worsened last month to 3.7%.
What changed
Bureau of Labor Statistics data shows September wholesale inflation reached its highest annual level since 2022.
Live updates
-
US Wholesale Inflation Hits 6.3% as Producer Prices Surge
US wholesale inflation rose to an annual rate of 6.3% in September, the largest gain since December 2022. The producer price index increased 1.3% from August to September, a monthly jump roughly twice what analysts expected and the highest since March 2022. Rising gasoline prices drove this increase, fueling fears of further interest rate hikes. While President Trump maintains the economy is performing well, the data suggests persistent price elevation as midterm elections approach. Federal Reserve Chair Kevin Warsh remains committed to reducing inflation to 2%.
Why it matters
The Federal Reserve raised rates last month for the first time in three years to combat rising costs. These economic pressures create a political challenge for GOP candidates and President Trump ahead of the midterms. The surge in producer prices often foreshadows future retail price increases for consumers.
What is confirmed
- Annual wholesale inflation reached 6.3% in September.
- The producer price index rose 1.3% between August and September.
- The Federal Reserve increased interest rates last month for the first time in three years.
- Inflation worsened last month to 3.7%.
- Gasoline prices contributed to the increase in producer prices.
Still unconfirmed
- Another rate hike is expected before the end of 2026.
- Iran's actions are influencing price levels.
What to watch next
- Next Federal Reserve announcement on interest rate adjustments
- Upcoming midterm election results
- Future Bureau of Labor Statistics reports on retail inflation
confidence 90%Sources used for this update (17)
- finance.yahoo.com — Yahoo Finance - Stock Market Live, Quotes, Business & Finance News
- www.joinbyline.com — Paul Krugman - Latest Articles | Byline
- CNN — Trump was trying to force prices lower ahead of the midterms. But Iran gets a vote, too
- AP News — Inflation worsened last month to 3.7% in sign that prices remain elevated as midterm elections near
- Al Jazeera — US inflation rises before midterm elections, fuelling rate hike fears
- help.naver.com — Futures Flat As Oil Rebounds After Trump's "Energy Ceasefire" Unravels, Memory Stocks Slide | ZeroHedge
- AP News — Wholesale inflation jumped last month by most in four years as gas prices soared
- CNBC — Wholesale prices jumped 6.3% annually in September, biggest gain since 2022
- Reuters — US producer prices post largest gain in 4-1/2 years; expensive gasoline boosts retail sales
- The American Prospect — A Perfect Economic Storm
- Paul Krugman | Substack — The Bad News on Inflation Just Keeps Coming
- www.fool.com — The Federal Reserve Just Warned More Rate Hikes Are Likely ...
Community Sentiment: How do you assess this situation?
Voice your perspective · Real-time aggregated sentiment from the Live Feeds community