Wholesale prices rose 0.4% in September, more than expected as inflation persists

The Bureau of Labor Statistics reported that wholesale prices rose more than expected in September.

The producer price index increased 0.4% for the month, which was in line with the estimates of the economists. The year-over-year increase in the producer price index was 8.5%, which was slightly slower than the 8.7% in August.

The index increased 0.4% for the month and 5.6% from a year ago, matching the August increase.

The cost of living is at its highest level in more than 40 years, and inflation has been the economy's biggest issue over the past year.

Since the beginning of the year, the Fed has raised rates five times for a total of 3 percentage points and is expected to raise rates again in three weeks.

A worker installs the instrument cluster for the Ford Motor Co. battery powered F-150 Lightning trucks under production at their Rouge Electric Vehicle Center in Dearborn, Michigan on September 20, 2022.

The data shows the Fed has work to do. The president of the Cleveland Fed said on Tuesday that there has been no progress in inflation. The price of a three-quarter point hike was the same as a day ago.

After the news, stock market futures were little changed, while Treasury yields were little changed.

The consumer price index is watched closely by economists. The prices received at the wholesale level are different from the prices that consumers pay.

The BLS said that two-thirds of the increase inPPI was due to the services sector. The jump in prices received for traveler accommodations was a big factor in the increase.

Final demand goods prices went up 0.4% on the month, and the index for fresh and dry vegetables went up 15.7%.