Wholesale Inflation Hit 4-Year High in September

By Dean Seal

Prices charged by American producers surged in September at their fastest clip in more than four years, according to the Labor Department.

The producer-price index rose by 1.3% last month, versus a 0.4% increase in August. It's the index's largest advance since March 2022. Economists polled by The Wall Street Journal were expecting a more modest 0.6% increase.

Over the 12 months through September, producer-price inflation was 6.3%, marking the fastest wholesale inflation rate since December 2022.

The September report bolsters the case for the Federal Reserve to raise rates again when its rate-setting committee convenes later this month.

Officials have said in recent weeks that they're keeping an open mind about the future path of interest rates and would let economic data guide their decision-making.

The producer-price index can serve as something of a bellwether for the Fed's policy direction. A portion of its data is used alongside consumer-inflation numbers to calculate the price index of personal-consumption expenditures, the Fed's preferred inflation metric.

The Labor Department said Wednesday that consumer inflation was hotter than expected in September, driven by high energy prices that appear to be filtering into other parts of the economy. Core prices, which strip out food and energy, grew faster than anticipated too.

"If the September PPI report also surprises to the upside, it could tip the balance toward a hike at the meeting," Bill Adams, an economist at Fifth Third Commercial Bank, said Wednesday.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

October 15, 2026 09:04 ET (13:04 GMT)