Washington.- Wholesale prices in the United States remained unchanged last month, in another sign that inflation is approaching normal after several years of putting pressure on American households in the wake of the Covid-19 pandemic.
The Department of Labor reported this Friday that its producer price index, which tracks inflation before it reaches consumers, did not change from August to September, after increasing 0.2% the previous month. Compared to a year ago, the index rose 1.8% in September, the smallest increase since February, and marked a decline from a 1.9% year-over-year increase in August.
Without taking into account food and energy prices, which tend to fluctuate from month to month, the so-called basic wholesale prices increased 0.2% since August, and 2.8% compared to the previous year, an increase compared to the increase of 2.6% from the previous month.
Wholesale prices for services increased modestly, but were offset by a decline in the price of goods, including a 5.6% reduction in the wholesale price of gasoline from August to September.
The wholesale price inflation data comes a day after the government announced that consumer prices rose just 2.4% in September compared to a year earlier, the smallest year-on-year increase since February 2021. This was just above the Federal Reserve’s 2% target, and well below inflation’s four-decade peak of 9.1%, reached in mid-2022. Still, less than a month away from presidential election, many Americans are unhappy with consumer prices, which remain well above where they were before the surge of inflation began in 2021.
The continued decline in inflation could reduce former President Donald Trump’s political advantage over the economy. In some polls, Vice President Kamala Harris has tied Trump on who would handle the economy better. However, most voters continue to give the economic issue a low score, primarily due to cumulative price increases over the past three years.
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