US wholesale inflation declines in August to still-high 8.7%

Sep 14, 2022, 5:38 AM | Updated: Sep 15, 2022, 2:49 am
Fresh seafood is shown for sale at a grocery store, Wednesday, July 27, 2022, in Surfside, Fla.  In...

Fresh seafood is shown for sale at a grocery store, Wednesday, July 27, 2022, in Surfside, Fla. Inflation at the wholesale level jumped 8.7% in August from a year earlier, a slowdown from July yet still a painfully high level that suggests prices will keep spiking for months to come. (AP Photo/Wilfredo Lee)

(AP Photo/Wilfredo Lee)

WASHINGTON (AP) — Inflation at the wholesale level jumped 8.7% in August from a year earlier, a slowdown from July yet still a painfully high level that suggests prices will keep spiking for months to come.

Wednesday’s report from the Labor Department also showed that on a month-to-month basis, the producer price index — which measures inflation before it reaches consumers — declined 0.1% from July to August, the second straight monthly decline.

Yet the better readings mostly reflect plunging gas prices and don’t necessarily point to a broader slowdown in inflation. A measure that excludes the volatile food and energy categories — so-called core prices — rose 0.4% from July to August and 7.3% in August compared with a year ago.

The cost of services — which are increasingly driving consumer inflation — rose 0.4% in August, driven by higher prices for public transportation, car rentals and some financial services.

Still, there were a few encouraging signs in Wednesday’s report: Wholesale food costs were flat from July to August, after a 1.3% spike the previous month. And wholesale goods prices overall fell 1.2%, suggesting that goods prices for consumers could soon decline.

On Tuesday, the government reported that consumer inflation was rampant across much of the economy in August. Apart from cheaper gas, consumer prices for everything from food and rents to furniture, medical care and new cars got pricier last month. The worse-than-expected consumer price spikes sent the stock market tumbling to its worst day in more than two years on fears that the Federal Reserve will turn even more aggressive in raising interest rates to fight inflation.

Wednesday’s producer price data captures inflation at an earlier stage of production and can often signal where consumer prices are headed. It also feeds into the Fed’s preferred measure of inflation, which is called the personal consumption expenditures price index.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Gabriel Madling loads sandbags onto his kayak so he can fortify his house on a submerged street in ...
Associated Press

Ian is long gone but water keeps rising in central Florida

GENEVA, Fla. (AP) — Residents in central Florida donned fishing waders, boots and bug spray and canoed or kayaked to their homes on streets where floodwaters continued rising Sunday despite it being four days since Hurricane Ian tore through the state. The waters flooded homes and streets that had been passable just a day or […]
15 hours ago
Associated Press

3 die when plane hits Minnesota home, but 2 in house unhurt

HERMANTOWN, Minn. (AP) — Three people aboard a small airplane died when it crashed into a house near a northern Minnesota airport, but the two people sleeping inside the home — and their cat — were unhurt. Hermantown Police said the Cessna 172 plane crashed into the second floor of the home just south of […]
15 hours ago
Associated Press

Fire damages Mark Wahlberg’s childhood home in Boston

BOSTON (AP) — A home where entertainers Mark and Donnie Wahlberg’s family once lived was damaged by fire Sunday in Boston’s Dorchester neighborhood, the fire department said. The blaze in a nearby home at around 10 a.m., but spread to another three buildings because of strong winds, Fire Commissioner Paul Burke said. Two firefighters suffered […]
15 hours ago
A military parade displaying Houthi forces and weapons moves through a main street of Sanaa, Yemen,...
Associated Press

Yemen’s warring sides fail to extend UN-backed truce

SANAA, Yemen (AP) — Yemen’s warring sides have failed to reach an agreement to extend a nationwide cease-fire, the U.N. said Sunday, endangering the longest lull in fighting since the country’s bloody civil war began. In a statement, the U.N.’s envoy to Yemen called on all sides to refrain from acts of provocation as the […]
15 hours ago
Associated Press

Chesapeake Bay lighthouse auctioned, with strings attached

HOOPERSVILLE, Md. (AP) — The federal government has sold off a rather inhospitable lighthouse in the middle of the Chesapeake Bay for a six-figure sum after a bidding war at auction. The Hooper Island Lighthouse, located west of Middle Hooper Island in Maryland’s Dorchester County, at first drew little interest, The Washington Post reported. But […]
15 hours ago
Associated Press

FBI: Jetliner evacuated in Albuquerque after security threat

ALBUQUERQUE, N.M. (AP) — An American Airlines flight from Texas to New Mexico was evacuated Sunday after landing at the Albuquerque airport because of a security threat, authorities said. All 179 people aboard Flight 928 from Dallas-Fort Worth were taken off the jet in the morning at Albuquerque International Sunport and were bused to the […]
15 hours ago

Sponsored Articles

...
Quantum Fiber

How high-speed fiber internet can improve everyday life

Quantum Fiber supplies unlimited data with speeds up to 940 mbps, enough to share 4K videos with coworkers 20 times faster than a cable.
...
Mayo Clinic Orthopedics and Sports Medicine

Why your student-athlete’s physical should be conducted by a sports medicine specialist

Dr. Anastasi from Mayo Clinic Orthopedics and Sports Medicine in Tempe answers some of the most common questions.
...
Dr. Richard Carmona

Great news: Children under 5 can now get COVID-19 vaccine

After more than two years of battle with an invisible killer, we can now vaccinate the youngest among us against COVID-19. This is great news.
US wholesale inflation declines in August to still-high 8.7%