WASHINGTON (AP) — Wholesale inflation cooled a bit last month yet remains elevated, evidence of stubbornly higher prices that have soured Americans on the economy and fueled big gains for Democrats in the midterm elections last week.

The Labor Department’s producer price index — which captures inflation before it reaches consumers — rose 0.3% from September to October, down from a 1.4% jump in the previous month. Yet compared with a year earlier, it jumped 6.5%, up from 6.3% in September and the biggest increase since November 2022, the government said Friday. A year ago, wholesale inflation was just 3.1%.

Friday’s report suggests prices are still rising at a pace well above the Federal Reserve's 2% annual target. On Tuesday, the government reported that the more widely-known consumer price index accelerated in October, driven by rising costs across a wide range of goods and services. Many Fed officials suggested in response that they will almost certainly need to raise their key short-term rate further, perhaps more than once, to combat higher prices.

When the Fed lifts its rate, other, longer-term borrowing costs for things like mortgages, auto loans, and credit cards also rise.