Wholesale inflation reaches levels last seen in 2022
US wholesale inflation rose 6.3% annually in September, marking the largest increase since December 2022. This jump exceeded expectations and represents the sharpest rise in producer prices in over four years. The surge was primarily driven by soaring energy costs, with gasoline prices specifically increasing by 20.3%. This trend indicates that businesses are currently facing higher inflationary pressures than consumers, potentially keeping the possibility of future interest rate hikes on the table as the economy remains overheated.
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- ✓ Wholesale inflation rose 6.3% annually in September.
- ✓ This September increase is the largest gain in producer prices in over four years.
- ✓ Rising fuel and gasoline prices drove the increase in wholesale inflation.
- ✓ Wholesale prices in September reached levels not seen since 2022.
What changed
September data shows wholesale inflation reached a 6.3% annual increase, the highest level since late 2022.
Live updates
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US Wholesale Inflation Hits 6.3% in September
US wholesale inflation rose 6.3% annually in September, marking the largest increase since December 2022. This jump exceeded expectations and represents the sharpest rise in producer prices in over four years. The surge was primarily driven by soaring energy costs, with gasoline prices specifically increasing by 20.3%. This trend indicates that businesses are currently facing higher inflationary pressures than consumers, potentially keeping the possibility of future interest rate hikes on the table as the economy remains overheated.
Why it matters
Producer prices often serve as a precursor to consumer price changes because businesses may pass higher costs to customers. This spike occurs amid midterm elections and ongoing economic struggles for Americans facing rising living costs. The current data suggests a stubborn inflationary trend that complicates monetary policy.
What is confirmed
- Wholesale inflation rose 6.3% annually in September.
- This September increase is the largest gain in producer prices in over four years.
- Rising fuel and gasoline prices drove the increase in wholesale inflation.
- Wholesale prices in September reached levels not seen since 2022.
Still unconfirmed
- The inflation spike is a political problem for Republicans in the midterm elections.
What to watch next
- Federal Reserve decisions regarding interest rate hikes
- October producer price index reports
- Consumer price index data to see if wholesale costs are passed to retail prices
confidence 95%Sources used for this update (19)
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- CNN — Wholesale inflation jumped in September by most in four years
- 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
- CNBC — Wholesale prices jumped 6.3% annually in September, biggest gain since 2022
- Axios — The too-hot-for-comfort economy
- Reuters — US producer prices post largest gain in 4-1/2 years; expensive gasoline boosts retail sales
- Yahoo Finance — Wholesale prices bubbled higher in September, keeping a rate hike on the table
- BBC — 'It's rough out here': Americans struggle to survive amid rising costs
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