Wholesale prices spike in latest sign of stubborn inflation

The Labor Department reported that US wholesale inflation rose 5.4% in August from a year ago, up from 4.7% in July, as higher oil and gas prices linked to the Iran war kept costs elevated. The producer price index rose 0.4% from July to August, after a 0.1% increase the previous month. Annual wholesale inflation peaked this year at 5.9% in May after the Iran conflict raised energy costs. The data may influence whether the Federal Reserve raises its short-term interest rate at next week’s policy meeting before September 30 inflation data. Excluding the volatile food and energy categories, core prices rose 0.2% from July to August, the same as the previous month. Compared with a year ago, core prices rose 4.6%, up from 4.2% in July. The latest figures will come under close scrutiny as they could help determine whether the Federal Reserve raises its short-term interest rate.