WASHINGTON – Wholesale inflation rose 8.6% in September year-over-year, with the largest increase since a 12-month change first calculated in 2010.
The Labor Department said Thursday that the monthly rise in its producer price index, which measures inflationary pressures before they hit consumers, was 0.5% in September, compared with a 0.7% increase in August.
An 8.6% increase in the 12 months ended September, compared with an 8.3% increase in the 12 months ended August, the previous record 12 months.
On Wednesday, the government said retail-level inflation rose 0.4% in September and CPI rose 5.4% in the past 12 months, the fastest pace since 2008.
The jump in inflation this year reflects higher food and energy prices, as well as a range of other goods, from furniture to cars, as the pandemic disrupted supply chains and demand exceeded supply.
The wholesale price report showed that core inflation at the wholesale level, excluding volatile energy and food, rose 0.2% in September compared to August and was 6.8% higher over the past 12 months.
Almost 80% of the total increase in wholesale prices last month was due to a 1.3% rise in commodity prices, the largest increase since May. In September, 40% of the jump in commodity prices reflected the rise in energy prices. Service price increases rose 0.2% less.
Wholesale food prices rose 2% in September, while energy prices rose 2.8%, the largest jump from a 5% rise in March.