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Inflation alarms ring anew with the U . S . midterms 19 days away

U.S. producer prices rose in September by the most in nearly four years, driven by surging fuel and fresh vegetable costs, raising questions about interest rates before a Federal Reserve meeting and the November 3 midterm elections. The Producer Price Index gained 6.3% over the 12 months to September, the largest rise since December 2022, while final demand prices climbed 2.6%, the biggest since December 2009, and gasoline rose 64% year on year. Diesel more than doubled from a year earlier, averaging $6.53 a gallon at its Sept. 22 peak, which is pushing up transport costs for food and goods. Fresh vegetable prices jumped 41% month on month, though fresh eggs fell more than 30%; a Fox News poll found just 22% approve of Trump's handling of inflation. Former Philadelphia Fed president Patrick Harker said he expects a rate increase this month, with another possible in December if conditions don't improve.

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