Wholesale inflation in the United States accelerated sharply in September, reaching its highest annual level in more than four years and raising fresh concerns about rising living costs and the broader economy just weeks before the midterm elections.
According to data released Thursday by the U.S. Bureau of Labor Statistics, the Producer Price Index (PPI), which measures price changes faced by producers, increased 1.3 per cent from August and 6.3 per cent compared with September 2025. The figures significantly exceeded economists’ expectations of a 0.5 per cent monthly increase and a 5.3 per cent annual rise.
The latest figures represent the fastest monthly increase in wholesale prices since March 2022 and the highest annual inflation rate since December 2022. In August, producer prices had risen 0.5 per cent month over month, with annual inflation standing at 5.6 per cent.
The report follows Wednesday’s Consumer Price Index (CPI) release, which showed consumer inflation climbing to an annual rate of 3.7 per cent, largely driven by higher gasoline prices. Core consumer inflation, which excludes food and energy, also accelerated to 2.6 per cent from 2.4 per cent, suggesting that price pressures are spreading across multiple sectors of the economy.
Energy costs were the primary driver of September’s wholesale inflation surge, reflecting disruptions linked to geopolitical conflicts, including the war involving Iran. Goods prices jumped 2.9 per cent during the month, the largest increase recorded since the current data series began in 2009, with energy accounting for approximately 80 per cent of that rise.
However, inflationary pressures extended beyond fuel costs. Core producer inflation, which excludes volatile food and energy prices, increased 0.7 per cent in September, its fastest monthly pace in five months. On an annual basis, core PPI reached five per cent, the highest level since January 2023.
The stronger-than-expected inflation readings have intensified concerns about affordability and the economic outlook as American voters prepare for the upcoming midterm elections. With both consumer and producer prices accelerating, rising costs are expected to remain a central issue in the political debate over the country’s economic performance.
