Wholesale prices jumped 6.3% annually in September, biggest gain since 2022

Wholesale inflation surged last month, marking the biggest increase in four years, as fuel costs skyrocketed, posing a growing challenge for consumers and a political issue for Republicans ahead of the midterm elections. According to the Labor Department's producer price index, wholesale prices jumped 6.3% in September compared to a year ago, up from 5.6% in August and the highest rise since December 2022.

On a monthly basis, wholesale prices surged 1.3% from August to September, the largest increase since March 2022. This data further highlights the sharp acceleration in September's consumer price index, which also rose as gas prices surged. Prices for various goods and services increased across the board. Even after excluding volatile food and energy categories, core prices rose 0.7% from August to September, a significant jump from 0.2% in the previous month.

From a year ago, core prices increased by 5%, up from 4.6% in August. The most substantial contributor to the price surge was energy, with wholesale gas prices soaring more than 20% from August to September. However, electricity, vegetables, shipping, and airfares also experienced price increases. The persistent inflation has eroded Americans' incomes and left most consumers dissatisfied with the economy.

A recent poll revealed that Trump's approval rating for handling the cost of living and overall economy has hit a new low, with only 17% and 26% of U.S. adults approving of his performance in these areas, respectively. The Federal Reserve is set to meet in two weeks and is expected to maintain its key short-term interest rate unchanged, but economists anticipate another rate hike later in the year to combat inflation.