This key inflation measure shows prices rose faster than expected last month
By Chris Isidore, CNN BusinessUpdated: Wed, 12 Oct 2022 12:54:23 GMTSource: CNNA key measure of inflation increased faster than expected in September, raising concerns that the Federal Reserve's
By Chris Isidore, CNN BusinessUpdated: Wed, 12 Oct 2022 12:54:23 GMT
Source: CNN
A key measure of inflation increased faster than expected in September, raising concerns that the Federal Reserve's aggressive rate hikes are having limited impact in bringing inflation under control.
The US Producer Price Index, which tracks what America's producers get paid for their goods and services, rose at an annual pace of 8.5% in September, down slightly from the 8.7% rise in August, the Labor Department reported Wednesday. But the report showed prices rose 0.4% month over month.
Economists surveyed by Refinitiv had been expecting the 12-month rise in wholesale prices to slow to an 8.4% increase, and the month-to-month increase to come in at 0.2%, compared to the 0.1% decline in August.
The report gauges prices paid for goods and services before they reach consumers. It is getting particular attention from economists and investors this month because it is being released one day before — instead of after — the Consumer Price Index, the most closely watched inflation report, which measures retail prices.
Energy prices ticked up 0.7% in September, compared to August, after two month-over-month declines in July and August, and food prices posted a 1.2% one-month increase after a slight decline in August. Stripping out volatile food and energy prices showed that the prices of other goods were unchanged in September.
This is a developing story and will be updated.
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