Producer prices rose more than expected in September, furthering the trend of rising costs in the U.S., according to newly released federal inflation data.
The U.S. Bureau of Labor Statistics released wholesale pricing data Wednesday that showed that those prices increased 0.4% last month, double the increase expected by Dow Jones.
“Over a quarter of the September increase in the index for final demand services can be traced to a 6.4-percent advance in prices for traveler accommodation services,” BLS said. “The indexes for food and alcohol retailing, portfolio management, machinery and vehicle wholesaling, oil and gas well drilling services, and hospital inpatient care also rose. In contrast, prices for long-distance motor carrying fell 0.4 percent.”
Producer prices have risen significantly in the past year.
“On an unadjusted basis, the index for final demand advanced 8.5 percent for the 12 months ended in September,” BLS said.
Those prices had begun to decline in recent weeks before increasing again in September.
“Final demand prices declined 0.2 percent in August and 0.4 percent in July,” BLS said.
Food has been one of the fastest rising price groups in the past year, putting a strain on Americans’ budgets.
“A major factor in the September increase in prices for final demand goods was a 15.7-percent advance in the index for fresh and dry vegetables,” BLS said. “Prices for diesel fuel, residential natural gas, chicken eggs, home heating oil, and pork also moved higher. Conversely, the index for gasoline fell 2.0 percent. Prices for prepared poultry and for steel mill products also declined.”
After the data was released, Republican lawmakers blasted President Joe Biden.
“Skyrocketing inflation has been hurting Florida families every day for nearly two years,” U.S. Sen. Rick Scott, R-Fla., said. “But, when times get tough, inflation becomes an unbearable kick for families trying to get back on their feet. Make no mistake – Joe Biden’s skyrocketing inflation is a huge roadblock for so many families now fighting to recover from Hurricane Ian."
