US producer prices see biggest jump since 2022 in added challenge to Trump
The Producer Price Index was up 6.3% from a year ago last month.
US wholesale inflation surged past analysts' expectations in September, reaching its highest level since 2022, according to government data released on October 15. The Producer Price Index (PPI) increased by 6.3% from a year ago, significantly higher than the 5.5% anticipated in a MarketWatch forecast. This marked the largest year-on-year jump since December 2022.
The acceleration from the previous month was also the biggest since March 2022. On a month-on-month basis, PPI rose by 1.3%, the widest advance since March 2022. This significant jump was largely attributed to a 20.3% increase in gasoline prices. Other contributing factors included a rise in diesel fuel, fresh and dry vegetables, jet fuel, residential electric power, and crude petroleum.
The consumer price index (CPI), another key inflation gauge, also rose more than expected to 3.7% in September. Despite the mounting inflation concerns, the odds of the Federal Reserve raising interest rates again in 2023 appear to be growing. However, the rising costs have already begun to impact consumer behavior. Retail sales grew by 0.8% in September, slower than the 1.3% pace in August, and were affected by the sharp increase in energy costs.
Experts predict that the consumer may struggle to maintain momentum heading into the holiday shopping season.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
