Economic Trends
Inflation Rises 0.4% After Recent Declines
Because of lingering inflation, the Fed may enact a fourth straight 0.75-percentage-point increase to interest rates in the coming weeks.
There was an unexpected drop in producer prices in February, and January’s price rise was not as large as initially anticipated.
After subsiding for two months, wholesale inflation rose by 0.4% in September, according to Producer Price Index data released Oct. 12 by the Bureau of Labor Statistics.
Final demand prices had declined 0.2% in August and 0.4% in July, according to BLS data.
September’s inflation jump — minus food, energy and trade services — was the the largest rise since May, when it increased 0.5%, according to the data. For the 12-month period ending in September, that index for final demand increased 5.6%.
When including food, energy and trade services, the PPI has risen 8.5% over the past year, according to the data.
Food prices increased 1.2% in September, while energy prices rose 0.7%.
In response to the ongoing inflation, the Fed has raised interest rates five times this year and is expected to enact a fourth consecutive 0.75-percentage-point increase in the coming weeks, according to business media reports.
