Wholesale Prices are Higher than Expected

The rise we saw in wholesale prices during the month of September was higher than expected, despite Federal Reserve efforts to control inflation. A report from the Bureau of Labor Statistics, published on Wednesday, proved this.

Important information from CNBC to note is, “The producer price index increased 0.4% for the month, compared with the Dow Jones estimate for a 0.2% gain. On a 12-month basis, PPI rose 8.5%, which was a slight deceleration from the 8.7% in August.”

The NY Post reported that food costs rose in September compared to August with fresh and dry vegetable costs soaring nearly 16%.

With wholesale prices increasing more than expected, inflation pressures appear to still be going strong. According to ABC News, it is believed that the Federal Reserve will likely “continue its rapid pace of interest rate hikes at its next meeting in November.”

We saw a slight decrease in overall costs last month, but that was likely short-lived. Oil prices are rising due to planned production cuts by many oil-exporting nations as well as grocery bills and the cost of gas.