U.S. Wholesale Inflation Increase Higher than Forecast, Hidden Tax for Consumers
Posted on 02/15/2022
The U.S. Department of Labor data shows that prices at the wholesale level hopped twice the expected level in January 2022 as inflation pressures were unstoppable to start the year. The producer price index measures final demand of goods and services. The index increased 1% for the month, against the Dow Jones estimate for 0.5%. Over the past 12 months, the producer price index rose an unadjusted 9.7%, close to a record in data going back to 2010. Excluding food, energy, and trade services, Core PPI rose 0.9%.
Rising food prices are leading U.S. consumers to fill their shopping carts with cheaper groceries, while suppliers are using less-quality goods. The price of beef and veal in November 2021 was 20.9% higher than in the same month a year ago.
U.S. President Joe Biden “will continue to make progress on his three-part plan of addressing supply chain disruptions; lowering kitchen tables costs with his Build Back Better agenda; and promoting more competition,” the statement said.