Producer prices in the U.S. rise 1.3%, the strongest since 2022
WHAT HAPPENED
The prices that companies charge in the U.S. rose 1.3% in September, the largest monthly jump since March 2022. Over the year, they have accumulated 6.3%. Gasoline for companies increased 20.3% and explained more than 80% of the rise.
WHY IT MATTERS
More expensive fuel raises the cost of moving and manufacturing products. Transportation, delivery services, agriculture, and gas stations feel it first; later, part of the cost may reach the supermarket. If a company spent $100 to produce and transport something, it now needs almost $101.30.
AND FOR YOUR PORTFOLIO
For a long-term investor, the data points to two pressures: companies that use a lot of fuel could see lower profits, while others may raise prices to protect themselves. Additionally, persistent inflation may keep rates high for longer and make credit more expensive.
💬 TELL IT LIKE THIS
“Higher gasoline prices start at the costs for companies and can end up in the price at the supermarket, transportation, and other services.”