Vanguard economist says sticky inflation will test your patience
US wholesale prices jumped 6.3% annually in September, marking the biggest gain since 2022. According to a Vanguard economist, persistent sticky inflation will continue testing consumer patience while keeping housing, services, insurance, and borrowing costs elevated. Meanwhile, US producer prices posted their largest gain in four and a half years, and expensive gasoline boosted retail sales after gas prices surged 9.1% in a single month to push the Consumer Price Index to 3.7%. These pressures complicate the Federal Reserve as officials weigh whether to hike interest rates again by December.
Listen to Live Briefing
Real-time synthesized voice briefing · Live Feeds Desk
- ✓ Wholesale prices jumped 6.3% annually in September, marking the biggest gain since 2022.
- ✓ US producer prices posted their largest gain in 4-1/2 years.
- ✓ Gas prices surged 9.1% in one month, pushing the Consumer Price Index to 3.7%.
What changed
Wholesale prices jumped 6.3% annually in September, delivering the largest gain since 2022 alongside a surge in US producer prices.
Live updates
-
Vanguard Economist Warns Sticky Inflation Will Test Patience
US wholesale prices jumped 6.3% annually in September, marking the biggest gain since 2022. According to a Vanguard economist, persistent sticky inflation will continue testing consumer patience while keeping housing, services, insurance, and borrowing costs elevated. Meanwhile, US producer prices posted their largest gain in four and a half years, and expensive gasoline boosted retail sales after gas prices surged 9.1% in a single month to push the Consumer Price Index to 3.7%. These pressures complicate the Federal Reserve as officials weigh whether to hike interest rates again by December.
Why it matters
The resurgence of wholesale and retail pricing pressures complicates the Federal Reserve as policymakers assess incoming data on consumer costs and energy spikes. Sticky inflation manifests as a slow leak in monthly budgets rather than a single large bill, driving up everyday expenses like rent renewals and fuel fill-ups. Analysts continue to monitor consumer resilience as households attempt to muscle through higher price levels across the broader economy.
What is confirmed
- Wholesale prices jumped 6.3% annually in September, marking the biggest gain since 2022.
- US producer prices posted their largest gain in 4-1/2 years.
- Gas prices surged 9.1% in one month, pushing the Consumer Price Index to 3.7%.
Still unconfirmed
- The Federal Reserve may hike interest rates again by December.
What to watch next
- Federal Reserve policy decisions regarding interest rate hikes by December
- Subsequent Consumer Price Index and retail sales reports to gauge consumer spending durability
confidence 90%Sources used for this update (13)
- finance.yahoo.com — Yahoo Finance - Stock Market Live, Quotes, Business & Finance News
- Rolling Stone — New Numbers Show Just How Badly Trump Wrecked the Economy
- 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
- The Atlantic — America’s Latest Inflation Check-In Doesn’t Look Good for Trump
- TheStreet — Vanguard economist says sticky inflation will test your patience
- Yahoo Finance — Gas prices surge 9.1% in one month, pushing CPI to 3.7% — and the Fed may hike rates again by December
- AP News — US consumers are muscling through higher prices, but for how long?
- wvtra.org — Sticky Inflation Could Test Consumer Patience - wvtra.org
- modernaction.io — Vanguard economist says sticky inflation will test your patience
- biztoc.com — Vanguard economist says sticky inflation will test your patience
Community Sentiment: How do you assess this situation?
Voice your perspective · Real-time aggregated sentiment from the Live Feeds community