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Thanks to lower oil prices and a strong U.S. dollar, the wholesale price index is higher than at any time since 2014.
According to the Bureau of Labor Statistics, the index rose by 0.4% for a third straight month in October, in part due to rising wholesale prices for used cars. The previous month’s 1.0% jump in the index was the largest monthly gain since February 2017.
The forward-looking index of wholesale prices rose in October by 2.3%, the biggest gain since February. Economists had expected an increase of 1.5%.
Core prices, which exclude the volatile food and energy sectors, also rose. According to the official U.S. inflation gauge, the core index rose 1.7% from a year ago. The core was lower than analysts’ expectations.
October’s increase in wholesale prices showed a big jump in the index for used cars after plunging 5.3% in September, suggesting that automakers are starting to raise the prices of used cars as they try to recover some of the losses incurred in the third quarter, said Moghadam.”