If you work in any industry that relies on product, you have are well-versed with our self-inflicted shipping woes, rising cost of goods, the impossibility of getting what’s been ordered, outrageous freight, etc.
All of which help explain why wholesale price increase have hit new records.
Wholesale prices rose at a brisk pace in May as inflation pressures mounted on the U.S. economy, the Bureau of Labor Statistics reported Tuesday.
The producer price index, a measure of the prices paid to producers of goods and services, rose 0.8% for the month and 10.8% over the past year. The monthly rise was in line with Dow Jones estimates and a doubling of the 0.4% pace in April.
Excluding food, energy and trade, so-called core PPI rose 0.5% on the month, slightly below the 0.6% estimate but an increase from the 0.4% reading in the previous month. On a year-over-year basis, the core measure was up 6.8%, matching April’s gain.
The two PPI measures remained near their historic highs — 11.5% for headline, and 7.1% for core, both hit in March.
The data is significant in that prices at the wholesale level feed through to consumer prices, which are running at their highest levels since December 1981. The consumer price index increased 8.6% annually in May, defying hopes that inflation had peaked in the spring.
Federal Reserve officials are watching the inflation numbers closely. Markets now expect the central bank to raise benchmark short-term borrowing rates by 75 basis points when their two-day meeting concludes Wednesday.
The Biden administration is hitting all kinds of new records, new, terrible records.
Sustained high inflation is out of control. Wholesale prices have been rising at double digit rates for six consecutive months. As Americans face sticker shock at the gas station and grocery stores, tax hikes, which are eventually passed on to consumers, are not the answer. pic.twitter.com/0PpNwIUomp
— Senator Mike Crapo (@MikeCrapo) June 14, 2022
When wholesale inflation surges 10.8%, the Stock Market loses 20% of its value in six months, and it costs the average American $100 to fill-up the gas tank… pic.twitter.com/ZEjvX004Hg
— The First (@TheFirstonTV) June 14, 2022
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