Wholesale prices rose ‘more than expected’ in September as inflation stays hot, hot, hot.
The producer price index (PPI) increased 0.4% in September – double what was estimated.
“Excluding food, energy and trade services, the index rose 0.4% for the month and 5.6% from a year ago.” CNBC reported.
Wholesale prices rose more than expected in September despite Federal Reserve efforts to control inflation, according to a report Wednesday from the Bureau of Labor Statistics.
The producer price index, a measure of prices that U.S. businesses get for the goods and services they produce, increased 0.4% for the month, compared with the Dow Jones estimate for a 0.2% gain. On a 12-month basis, PPI rose 8.5%, which was a slight deceleration from the 8.7% in August.
Excluding food, energy and trade services, the index increased 0.4% for the month and 5.6% from a year ago, the latter matching the August increase.
Food prices helped boost the increase in goods inflation, with a 1.2% monthly increase. Energy rose 0.7% after posting massive gains the previous two months.
CNBC’s Rick Santelli broke down the latest numbers on ‘Squawk Box’ on Wednesday.
Producer prices are “hotter than expected,” Santelli said.
The Federal Reserve last month raised interest rates by another 75 basis points – or 0.75% to ‘fight’ Bidenflation.
The fed funds rate is now in the range of 3% to 3.25% – the highest since 2008.
30-year fixed rate mortgages are near 7%!
The recession is real. Depression is increasingly likely.