The cost of doing business in the US is getting increasingly pricier: Wholesale-level inflation accelerated last month to its highest rate in nearly four years, Bureau of Labor Statistics data showed Friday.
The Producer Price Index, a measurement of average price changes received by producers and manufacturers, rose 0.3% from the month before and 6.5% for the 12 months ended in October, the highest annual rate since November 2022.
The Iran war and the resulting energy supply shock have sent gas and diesel prices markedly higher in recent months. Fuel prices didn’t rise as fast last month as they did in September (when the PPI rose at a breakneck 1.4% rate to 6.3%); however, the ripple effects from the recent months’ surge coupled with other more persistent price pressures kept wholesale inflation quite elevated.
While PPI doesn’t translate directly to the Consumer Price Index, its trajectory and category-specific price hikes can serve as a potential bellwether for what consumers could experience in the months to come.
This story is developing and will be updated.
