US wholesale inflation surged past analysts' expectations in September, marking its biggest year-on-year jump since 2022 as petrol prices rocketed due to the war with Iran, US government data showed on Thursday.

The latest numbers, coming a day after hotter-than-anticipated consumer inflation, underscore the challenges that US President Donald Trump faces in cooling prices and winning over cost-weary voters in November's midterm elections.

The Producer Price Index was up 6.3 percent from a year ago last month, according to the US Labour Department, significantly above the 5.5 percent expected in a forecast published by MarketWatch.

The acceleration from August was also the biggest year-on-year jump since December 2022, the department said.

On a month-on-month basis, PPI rose by 1.3 percent, a sharp increase from the 0.5 percent rate seen in August.

Half of the September increase for goods costs can be "traced to prices for gasoline, which jumped 20.3 percent," the report said.

"The indexes for diesel fuel, fresh and dry vegetables, jet fuel, residential electric power, and crude petroleum also rose," it added.

A day prior, government data showed that the consumer price index – a key gauge of inflation – climbed more than expected to 3.7 percent in September.

Still, US consumer spending appears to be holding up, even as households feel the pinch from price hikes.

A separate Commerce Department report on Thursday showed that retail sales grew by 0.8 percent month-on-month in September.

The numbers, which are adjusted for seasonal changes but not inflation, likely reflect the sharp price hikes in energy costs, however.

Spending continued to rise at restaurants and bars, and sharply rose at petrol stations. (AFP)



Edited by Cecil Wong