Wholesale prices rise largest amount in decade

WASHINGTON – Inflation at the wholesale level rose 8.6% in September compared with a year ago, the largest advance since the 12-month change was first calculated in 2010.

The Labor Department reported Thursday that the monthly increase in its producer price index, which measures inflationary pressures before they reach consumers, was 0.5% for September compared with a 0.7% gain in August.

The 8.6% rise for the 12 months ending in September compared with an 8.3% increase for the 12 months ending in August, which had been the previous record 12-month gain.

On Wednesday, the government reported that inflation at the retail level rose 0.4% in September with its consumer price index up 5.4% over the past 12 months, matching the fastest pace since 2008.

The jump in inflation this year reflects higher prices for food and energy and a number of other items from furniture to autos as the pandemic has snarled supply chains and demand has outstripped supply.

The report on wholesale prices showed that core inflation at the wholesale level, excluding volatile energy and food, was up 0.2% in September from August and was 6.8% higher over the past 12 months.

IMF warns of pandemic’s impact on global recovery

WASHINGTON – The International Monetary Fund is warning of rising threats to the global economic recovery posed by the ongoing coronavirus pandemic and an outbreak of inflation.

The lending agency called Thursday for greater efforts from wealthy nations to boost coronavirus vaccination rates in poorer countries, while also urging the Federal Reserve and other central banks to respond quickly if current inflation pressures prove not to be transitory.

The IMF panel that sets policy for the 190-nation organization wrapped up its annual meeting with a joint statement expressing concerns about the wide divergence in vaccination rates between wealthy and poor countries.

The group urged greater efforts by wealthy nations toward achieving a goal of having 40% of the population of all countries vaccinated by the end of this year and 70% by the middle of next year.

While nearly 60% of the population in advanced economies are now fully vaccinated, only about 4% of the population in poorer countries are.

Profits soar at four largest U.S. banks during recovery

NEW YORK – Four of the largest U.S. banks said their profits grew by double-digits last quarter, as a healthier U.S. economy has allowed banks to have fewer bad loans and charge-offs.

But the results for Citigroup, Bank of America, Wells Fargo and Morgan Stanley benefited from one-time boosts to their profits, and low interest rates remain a significant headwind for Wall Street’s financial titans.

Bank of America said net income rose 58% to $7.26 billion, or 85 cents a share.

That topped the estimates of Wall Street analysts who were looking for earning per share of 70 cents, according to FactSet. Meanwhile Wells Fargo posted a 59% jump in profit from a year earlier.

Both banks benefited from being able to reverse some funds set aside early in the pandemic in case of loan defaults.

These billions of dollars of potentially troubled loans have been moved back on to the banks’ “good” side of their books, which has resulted in one-time bumps to bank profits.

From wire reports

Wells and BofA’s results echoed Wednesday’s results from JPMorgan Chase, which also saw its profits rise sharply last quarter due to the release of more loans from its troubled loan portfolio.