Wholesale inflation jumped last month by most in four years as gas prices soared
Summary
Wholesale prices in the U.S. increased sharply in September, mainly due to a big rise in gas prices. This higher inflation at the production level shows that rising costs are still a problem for many Americans and could affect political support for Republicans in upcoming elections.Key Facts
- The producer price index (PPI), which measures wholesale inflation, rose 6.3% in September compared to a year earlier.
- This 6.3% increase is the largest since December 2022.
- Wholesale prices increased 1.3% from August to September, the biggest monthly jump since March 2022.
- Gas prices at the wholesale level went up more than 20% from August to September.
- Other costs that rose include electricity, vegetables, shipping, and airfares.
- Core wholesale inflation (excluding food and energy) increased 0.7% in one month and 5% yearly.
- Inflation has been above the Federal Reserve’s 2% goal for over five years.
- Rising inflation and shrinking real wages (pay adjusted for inflation) are seen as economic challenges and political issues for President Donald Trump and Republicans.
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