"Surging Gas Prices Drive Up US Wholesale Inflation"

US wholesale inflation, as measured by the Producer Price Index (PPI), rose 2.2% for the 12 months ended in September, driven by higher energy and food prices. Gas prices hit new yearly highs in September, but have since swung in the opposite direction. The core PPI, which excludes food and energy, rose 2.7% for the month. While the recent surge in energy prices may cause a short-term pinch, economists do not expect it to have a lasting effect on inflation. The Consumer Price Index (CPI) report for September is expected to show a similar trend, with high but easing gas prices potentially pushing up overall inflation. The markets anticipate the Federal Reserve to hold steady on interest rates.