US wholesale inflation surges 6.3% in September, highest annual rise since

US wholesale inflation accelerated sharply in September, recording its biggest annual increase in nearly four years as soaring fuel costs and rising prices across a broad range of goods and services added to inflationary pressures.

The Producer Price Index (PPI), which measures prices received by producers before goods and services reach consumers, surged 6.3 per cent year-on-year in September, up from 5.6 per cent in August, according to data released by the US Labour Department on Thursday.

On a monthly basis, producer prices climbed 1.3 per cent in September, marking their steepest increase since March 2022. This followed a 0.5 per cent rise in August, highlighting a renewed acceleration in wholesale price pressures.

The latest data comes a day after US consumer inflation also accelerated in September, driven partly by a jump in gasoline prices. The simultaneous rise in wholesale and consumer prices underscores the challenges facing the US economy as persistent inflation continues to weigh on household purchasing power.

Underlying inflationary pressures also strengthened during the month. Core producer prices, which exclude volatile food and energy categories, increased 0.7 per cent month-on-month in September, compared with a 0.2 per cent rise in August.

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On an annual basis, core producer inflation accelerated to 5 per cent in September from 4.6 per cent in the previous month. The latest inflation readings could complicate the Federal Reserve’s efforts to bring price growth back to its 2 per cent target. Inflation has remained above that goal for five and a half years, keeping monetary policy and interest-rate decisions in focus.

Persistent price pressures also pose a political challenge for Republicans ahead of the US midterm elections, as rising living costs remain a key concern for American consumers.