{"id":74636,"date":"2026-11-13T10:08:18","date_gmt":"2026-11-13T14:08:18","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wholesale-inflation-surges-as-feds-goolsbee-warns-of-persistent-price-pressures\/74636\/"},"modified":"2026-11-13T10:08:18","modified_gmt":"2026-11-13T14:08:18","slug":"wholesale-inflation-surges-as-feds-goolsbee-warns-of-persistent-price-pressures","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wholesale-inflation-surges-as-feds-goolsbee-warns-of-persistent-price-pressures\/74636\/","title":{"rendered":"Wholesale Inflation Surges as Fed\u2019s Goolsbee Warns of Persistent Price Pressures"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>US Producer Price Index (PPI) rose 6.5% year-over-year in October<\/strong>, the highest annual rate in nearly four years, while core PPI remained sticky at <strong>5.0%<\/strong>.<\/li>\n<li><strong>Chicago Fed President Austan Goolsbee<\/strong> characterized recent inflation data as &quot;the wrong way&quot; and &quot;disturbing,&quot; noting that services and health care costs are proving far more persistent than expected.<\/li>\n<li><strong>Ukraine successfully targeted Lukoil&#39;s (<a href=\"\/stock\/LUKOY\">LUKOY<\/a>) Volgograd refinery<\/strong>, striking a facility that accounts for roughly <strong>5% of Russia&#39;s total refining capacity<\/strong> and sparking significant fires.<\/li>\n<li><strong>Geopolitical tensions escalated<\/strong> as Mossad Director Roman Gofman arrived in Washington D.C. to meet with CIA Director John Ratcliffe, amid reports that Prime Minister Netanyahu is pressing for a resumption of military action against Iran.<\/li>\n<\/ul>\n<h2>Wholesale Inflation Hits Multi-Year Highs<\/h2>\n<p>Wholesale-level inflation in the United States accelerated significantly in October, with the <strong>Producer Price Index (PPI)<\/strong> climbing <strong>6.5%<\/strong> on an annual basis. This marks the largest 12-month increase since late 2022, fueled by rising costs in final demand goods and persistent service sector pressures. On a monthly basis, the headline PPI rose <strong>0.3%<\/strong>, while <strong>Core PPI<\/strong> (excluding food and energy) also increased by <strong>0.3%<\/strong>, matching economist estimates but highlighting the difficulty in cooling underlying price growth.<\/p>\n<p>Market participants reacted to the report by slightly adjusting expectations for future Federal Reserve tightening. While the data remains elevated, some traders noted that the core monthly figure of <strong>0.3%<\/strong> was a deceleration from the previous month\u2019s <strong>0.7%<\/strong> surge, leading to a marginal pricing in of less aggressive tightening in the immediate term.<\/p>\n<h2>Fed\u2019s Goolsbee Sounds Alarm on &quot;Broad-Based&quot; Inflation<\/h2>\n<p>In an interview on CNBC, <strong>Chicago Fed President Austan Goolsbee<\/strong> expressed serious concern over the trajectory of inflation, stating it has spread into categories where prices are no longer driven solely by energy supply shocks. Goolsbee emphasized that the <strong>Fed &quot;definitely has work to do&quot;<\/strong> to maintain its credibility as inflation proves more persistent than anticipated. He specifically pointed to the <strong>data center buildout<\/strong> and overheating demand as new drivers pushing up prices.<\/p>\n<p>Goolsbee further noted that even if <a href=\"https:\/\/stockmarketwatch.com\/energy\/crude-oil\" data-internallinksmanager029f6b8e52c=\"12\" title=\"Crude oil\">oil prices<\/a> were to drop rapidly, <strong>refining capacity remains &quot;problematic,&quot;<\/strong> which will likely keep diesel and jet fuel prices elevated. He warned that services inflation and rising health care costs do not appear ready to change quickly, suggesting that the central bank cannot simply &quot;look through&quot; current inflation if demand continues to overheat.<\/p>\n<h2>Ukrainian Strike Cripples Major Russian Refinery<\/h2>\n<p>Geopolitical risks to energy supplies intensified as Ukraine launched a massive drone assault on <strong>Lukoil&#39;s (<a href=\"\/stock\/LUKOY\">LUKOY<\/a>) Volgograd refinery<\/strong>. The facility, one of Russia&#39;s ten largest with an annual capacity of <strong>14 million metric tons<\/strong>, was reportedly hit in its primary distillation units. The attack resulted in at least four fatalities and sparked massive fires, leading to fuel shortages and long queues at gas stations across the Volgograd region.<\/p>\n<p>This strike is part of a broader Ukrainian campaign that has reportedly disrupted approximately <strong>30% of Russia&#39;s refining capacity<\/strong> as of mid-November. Analysts suggest these disruptions could further tighten global supplies of refined products, complicating the inflation outlook for energy-dependent sectors.<\/p>\n<h2>Diplomatic and Military Maneuvering in Washington<\/h2>\n<p>On the diplomatic front, <strong>Mossad Director Roman Gofman<\/strong> is in Washington D.C. for high-level meetings with <strong>CIA Director John Ratcliffe<\/strong> and is expected to travel to Miami to meet with White House envoy <strong>Steve Witkoff<\/strong>. The visit comes amid reports from <em>Axios<\/em> that Israeli Prime Minister Benjamin Netanyahu is pressing the Trump administration to resume military operations against Iran.<\/p>\n<p>The convergence of sticky inflation data, energy infrastructure attacks, and heightened Middle East tensions has created a &quot;fraught&quot; environment for policymakers. As Goolsbee noted, the Fed is now forced to figure out the same &quot;persistence of inflation&quot; that has become a central focus for incoming Treasury officials and the broader administration.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways US Producer Price Index (PPI) rose 6.5% year-over-year in October, the highest annual rate in nearly four years, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":50383,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center 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