U.S. Sept. PPI up 1.9%, most in 31 years

Marketwatch reports:

U.S. wholesale prices rose a larger-than-expected 1.9% in September, the biggest jump in 31 years, the Labor Department said Tuesday.


Price increases were led by a 7.1% rise in wholesale energy prices, the biggest jump in 15 years. Food prices also soared, rising 1.4% on a record 49% increase in egg prices.

Core prices, which exclude food and energy, increased 0.3% as prices for capital goods increased 0.3%. Car prices increased 0.9% and heavy truck prices climbed 1%.

"The report will do little to calm inflation concerns of Fed officials," said Michael Moran, chief economist for Daiwa Securities America. "Policymakers are nervous about energy prices feeding through to prices of other goods and services."

The Fed isn't going to stop the rate increases.