Inflation, as measured by producer wholesale prices, came in a bit hotter than expected at 8.5% for the year ending in September, according to a report Wednesday from the Bureau of Labor Statistics.
That year-over-year inflation rate was down from 8.7% the month before, but still a bit higher than forecasters expected. On a month-to-month basis, the producer price index grew by 0.4%, double forecast expectations.
Looking at the past several months, it appears as though inflation as measured by the producer price index peaked and is on its way down. Annual wholesale inflation reached its zenith in April, clocking in at 11.5%. It stayed above 10% throughout the summer but has now been in retreat for the past three months. Trends in producer prices eventually trickle down to households.
