US wholesale prices up 0.4 per cent in September as food costs surge

US wholesale prices jumped 0.4 per cent in September as food costs rose by the largest amount since May. The Labor Department said Wednesday that the September increase in its producer price index, which measures inflation before it reached the consumer, followed a 0.3 per cent rise in August and a 0.6 per cent surge in July which had been the biggest monthly gain since late 2018.

The 0.4 per cent September rise was bigger than economists had been expecting and reflected a 1.2 per cent increase in food costs, the sharpest rise since a 5.6 per cent spike in May, as coronavirus-related shutdowns at food processing plants triggered shortages. For September energy prices fell for a second month, dropping 0.3 per cent after a 0.1 per cent dip in August.

The government had reported Tuesday that inflation at the retail level was up 0.2 per cent in September, just half the August gain, even though the price of used cars jumped by the largest amount in more than a half-century.(AP) RUP RUP.