US producer inflation soars past expectations

US wholesale inflation surpassed expectations in September, with the largest year-on-year jump since 2022, according to data released by the US government on Thursday. The Producer Price Index (PPI) rose by 6.3 percent compared to the previous year, significantly higher than the 5.5 percent forecast. This marked the biggest year-on-year increase since December 2022, the department reported.

On a month-over-month basis, PPI increased by 1.3 percent, a sharp rise from the 0.5 percent seen in August. The most substantial portion of the September surge was driven by gasoline prices, which surged by 20.3 percent, followed by diesel fuel, fresh and dry vegetables, jet fuel, residential electric power, and crude petroleum.

Earlier that day, consumer price index data revealed that inflation climbed more than anticipated to 3.7 percent in September. Despite these price hikes, consumer spending appears to be resilient, as retail sales grew by 0.8 percent month-on-month in September, according to a separate Commerce Department report. This growth likely reflects the sharp increase in energy costs, particularly in petrol stations and restaurants.