US wholesale prices posted their steepest annual increase since December 2022, according to data released Thursday by the Bureau of Labor Statistics. The producer price index rose 1.3% in September and 6.3% over the past year, both figures significantly exceeding economist forecasts of 0.6% monthly and 5.5% annually.
Energy prices were the primary driver of the surge, reflecting supply disruptions from the Middle East conflict that have pushed oil prices higher. When energy and food costs are excluded, the underlying measure of wholesale inflation grew a more modest 0.5% for the month and 5% annually.
The reading follows recent consumer price data showing similar inflationary pressures. The consumer price index jumped 0.6% from August to September and 3.7% year-over-year, both exceeding economist expectations. The Federal Reserve's latest economic survey recorded the highest mentions of inflation-related terms on record, according to analysis from Bespoke Investment Group.
Retail sales provided a brighter note, growing 0.8% in September against forecasts of 0.4%, though this marked a slowdown from the previous month's increase of more than 1%.