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WASHINGTON -- Wholesale inflation rose more than expected last month on a big jump in fuel costs as rising prices become a bigger economic challenge for millions of Americans, and a growing political problem for Republicans in the upcoming midterm elections.
The Labor Department's producer price index -- which captures inflation before it reaches consumers -- soared 6.3% in September from a year ago, up from 5.6% in August and the biggest increase since December 2022, the government said Thursday.
On a monthly basis, wholesale prices rose 1.3% from August to September, marking the largest increase since March 2022, after a 0.5% gain the previous month.
The data indicated that rising fuel prices, particularly for the diesel fuel used by long-haul trucks and freight trains, is pushing up the cost of shipping and warehousing goods.
That is starting to lift the cost of food, one place where prices appeared to have cooled this year. Wholesale food prices jumped 1.2% just from August to September, though they are still unchanged from a year ago.
Transportation and warehousing prices climbed 3.4% last month and are 16% higher than a year ago, the report showed.
Thursday's report amplifies the consumer price index released Wednesday, which also accelerated in September as gas prices jumped. But a broad range of goods and services became more expensive.