Please ensure Javascript is enabled for purposes of website accessibility
Wholesale Inflation in US Rises 2.2% in September, Biggest Year-Over-Year Gain Since April
By admin
Published 2 years ago on
October 11, 2023

Share

Getting your Trinity Audio player ready...

WASHINGTON — U.S. wholesale prices rose last month at the fastest pace since April, suggesting that inflationary pressures remain despite a year and a half of higher interest rates.

The Labor Department reported Wednesday that its producer price index — which measures inflation before it hits consumers — climbed 2.2% from a year earlier. That was up from a 2% uptick in August.

On a month-to-month basis, producer prices rose 0.5% from August to September, down from 0.7% from July to August.

Excluding volatile food and energy prices, so-called core inflation rose 2.7% in September from a year earlier and 0.3% from August. The Federal Reserve and many outside economists pay particular attention to core prices as a good signal of where inflation might be headed.

Wholesale prices have been rising more slowly than consumer prices, raising hopes that inflation may continue to ease as producer costs make their way to the consumer. Wednesday’s numbers show that wholesale inflation, driven by an uptick in the price of goods, came in higher last month than economists had expected.

Last year, inflation reached highs not seen in four decades, prompting the Fed to raise interest rates aggressively. The central bank has boosted its benchmark rate 11 times since March 2022. Those higher borrowing costs have helped cool inflation and slow a still-solid job market.

There are growing expectations that the Fed may decide to leave interest rates alone for the rest of the year. On Monday, two Fed officials suggested that the central bank may leave its key rate unchanged at its next meeting in three weeks, helping touch off a rally in bonds and stocks.

In the meantime, the economy has remained sturdier than expected. Optimism is rising that the Fed may pull off a ”soft landing” — raising rates just enough to tame inflation without tipping the economy into a deep recession.

On Thursday, the Labor Department will issue its closely watched consumer price index for September. Last month, the department reported that compared with 12 months earlier, core consumer prices in August rose at the smallest pace in nearly two years.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

UP NEXT

US Stocks Drift Near Their Record Following an Encouraging Inflation Update

Fresno Fire’s Helmet Cam Catches Blaze Raging on House, Occupants Escape Safely

4 hours ago

Derek Carr Says Fresno Is Home, as City Honors Bulldog Great

4 hours ago

Judge Temporarily Bars Trump From Deploying National Guard Troops in Los Angeles

LOS ANGELES – A U.S. judge on Thursday temporarily barred President Donald Trump from deploying National Guard troops in Los Angeles, ...

2 hours ago

Law enforcement officers guard Los Angeles City Hall during a protest against federal immigration sweeps, in Los Angeles, California, U.S. June 12, 2025. (Reuters/David Ryder)
2 hours ago

Judge Temporarily Bars Trump From Deploying National Guard Troops in Los Angeles

3 hours ago

Israel Attacks Iran’s Capital With Explosions Booming Across Tehran

The Firestone Incident near Highway 198 and Firestone Avenue in Coalinga has grown to 50 acres with a critical rate of spread, prompting evacuation orders for Zone P19, warnings for multiple surrounding zones, and a road closure, according to CalFire. (X/CalFire)
4 hours ago

Fresno County Wildfire Threatens Thousands of Acres. Evacuation Orders, Warnings Issued

A late-night fire heavily damaged a Fresno home on on Wednesday, June 11, 2025, but all six occupants escaped safely with no injuries. (Fresno FD)
4 hours ago

Fresno Fire’s Helmet Cam Catches Blaze Raging on House, Occupants Escape Safely

4 hours ago

Derek Carr Says Fresno Is Home, as City Honors Bulldog Great

4 hours ago

Fresno Councilmember Warns of Possible ICE Raid at Popular Outdoor Market

U.S. Marines stand with their packs and weapons, as protests against federal immigration sweeps continue, in greater Los Angeles, California, U.S., June 9, 2025, in this screen grab taken from a handout video. (DVIDS/Handout via REUTERS/File Photo)
5 hours ago

Americans Split on Trump’s Use of Military in Immigration Protests, Reuters/Ipsos Poll Finds

Mark Kismet, 50, who is considered at-risk went missing on Friday, June 6, 2025, in Clovis near Harlan Ranch is still missing according to the Clovis Police Department on Thursday, June 12, 2025. (Clovis PD)
5 hours ago

Clovis Police Still Searching for Missing At-Risk Man

Help continue the work that gets you the news that matters most.

Search

Send this to a friend