Inflation at the wholesale level rose 8.5% in September from a year earlier, the third straight decline though costs remain at painfully high levels.
Wednesday, Oct. 12, report from the Labor Department also showed that the producer price index which measures price changes before they reach the consumer rose 0.4% in September from August, after two months of declines.Wednesday’s report from the Labor Department also showed that the producer price index — which measures price changes before they reach the consumer — rose 0.4% in September from August, after two months of declines.
The larger-than-expected monthly increase in overall wholesale prices suggests inflation pressures are still strong in the U.S. economy, with the Federal Reserve likely to continue its rapid pace of interest rate hikes at its next meeting in November. Excluding the volatile food and energy categories, core prices rose 0.3% in September from August for the third straight month, and 7.2% compared with a year earlier.Services prices — including health care, lodging, and shipping — rose 0.4% in September, the most in three months. Federal Reserve officials have recently cited rising services prices as a source of concern, because they can take longer to reverse since they mostly reflect the impact of rising wages.
The Fed has boosted its benchmark short-term interest rate by three percentage points since March to combat rising prices. It's. Higher rates are intended to cool consumer and business borrowing and spending and bring down inflation..
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