US producer price inflation has risen to a high of 8.5 percent.

The prices increased by 8.5 percent on a year-on-year basis.

The fee producers charge for their goods and services rose 0.4 percent in September.

Wholesale inflation is squeezing businesses and millions of American households.

Fed officials vow not to hike rate while inflation remains high

According to the Department of Labor, the bulk of the increase - about 60% - can be traced to a 1.2% monthly increase in food prices.

This report does not yet contain strong evidence that inflation is cooling to the broader levels of the economy," said Jeffrey Roach, chief economist at LPL Financial. "

Hopefully, the Fed will recommend fighting inflation at the risk of pushing the economy into recession.

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