Wholesale inflation jumps record 9.6% over past 12 months
Last edited Tue Dec 14, 2021, 10:53 AM - Edit history (1)
Source: Associated Press, via Yahoo! Finance
MARTIN CRUTSINGER
Tue, December 14, 2021, 8:44 AM
WASHINGTON (AP) -- Prices at the wholesale level surged by a record 9.6% in November from a year earlier, an indication of on-going inflation pressures
The Labor Department said Tuesday that its producer price index, which measures inflation before it reaches consumers, rose 0.8% in November after a 0.6% monthly gain in October. It was the highest monthly reading in four months.
Food prices, which had fallen 0.3% in October, jumped 1.2% in November. Energy prices rose 2.6% after a 5.3% percent rise October.
The 12-month increase in wholesale inflation set a new record, surpassing the old records for 12-month increases of 8.6% set in both September and October. The records on wholesale prices go back to 2010.
The surge in wholesale prices followed news Friday that consumer prices shot up 6.8% for the 12 months ending in November, the biggest increase in 39 years, as the price of energy, food and many other items shot up.
The Federal Reserve, holding its last meeting of the year this week, is expected to announce Wednesday that it will accelerate the pace at which it reduces its monthly bond purchases, preparing the way to begin raising its key benchmark interest rate, possibly by mid-2022 as it seeks to demonstrate its resolve to bring inflation under control.
Read more: https://finance.yahoo.com/news/wholesale-inflation-jumps-record-9-134429918.html
In a few minutes, we'll have articles in the WaPo, TWSJ., and Yahoo! Finance about this. They will have more to say. I'll edit this post then.
{later}
You're not going to like this. The Associated Press has gone with a really hyper headline.
Here's my original post:
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PPI for final demand advances 0.8% in November; services rise 0.7%, goods increase 1.2%
https://www.bls.gov/news.release/ppi.nr0.htm
Economic News Release USDL 21-2143
Producer Price Index News Release summary
Transmission of material in this release is embargoed until 8:30 a.m. (ET), Tuesday, December 14, 2021
Technical information: (202) 691-7705 * ppi-info@bls.gov * www.bls.gov/ppi
Media contact: (202) 691-5902 * PressOffice@bls.gov
PRODUCER PRICE INDEXES - NOVEMBER 2021
The Producer Price Index for final demand increased 0.8 percent in November, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices moved up 0.6 percent in each of the 3 prior months. (See table A.) On an unadjusted basis, the final demand index rose 9.6 percent for the 12 months ended in November, the largest advance since 12-month data were first calculated in November 2010.
In November, the index for final demand services rose 0.7 percent and prices for final demand goods increased 1.2 percent.
The index for final demand less foods, energy, and trade services moved up 0.7 percent in November, the largest rise since climbing 0.8 percent in July. For the 12 months ended in November, prices for final demand less foods, energy, and trade services increased 6.9 percent, the largest advance since 12-month data were first calculated in August 2014.
{snip a whole bunch of tables and numbers}
This information will be available on the PPI website at www.bls.gov/ppi or by contacting the PPI Section of Index Analysis and Public Information at ppi-info@bls.gov or (202) 691-7705.
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[center]Facilities for Sensory Impaired[/center]
Information from these releases will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200, Federal Relay Services: 1-800-877-8339.
Alexander Of Assyria
(7,839 posts)Seriously, remember when elections were all about the economy, stupid?
But that seems to only apply when republicans are in office and the economy is humming.
Democrats in power? Economy humming? Then its
. All about the scary deficit, gas prices, inflation..anything but the booming economy.
Just my sorry amateur observations.
twodogsbarking
(9,885 posts)Won't be changing any time soon.
onenote
(42,821 posts)Pretending this isn't a problem won't make it go away.
twodogsbarking
(9,885 posts)I don't believe them.
onenote
(42,821 posts)Because most people remember paying less.
twodogsbarking
(9,885 posts)taking advantage of most of the world.
onenote
(42,821 posts)But that probably is an answer in and of itself.
twodogsbarking
(9,885 posts)Insult taken.
TexasBushwhacker
(20,232 posts)just like any other consumer product. It's called capitalism.
twodogsbarking
(9,885 posts)mahatmakanejeeves
(57,712 posts)IronLionZion
(45,615 posts)wholesale inflation is up all around the world. If you look at India, Germany, Japan, etc. the US doesn't look so bad.
I expect the Fed to taper in response to this. And in some sectors, production is held back by labor shortages until employers decide to pay more. These higher prices should "trickle down" to higher wages.
The Biden administration has made progress on improving the delays at our ports. There are fewer stories on that now.
cstanleytech
(26,347 posts)even as they grudgingly raise workers pay a little so they would rather raise prices than reduce their profits.
Its stupid and shortsighted though as in the long run it can lead to major problems including things like revolutions.
After all the general public will only take being shit on only so far.
madville
(7,413 posts)There is actually a bigger backlog in the pipeline now than previously this year, they have somewhat masked the issue though. They have stopped ships from visibly gathering off of Long Beach for example, now they have a drift area 150 miles offshore. They are also requiring ships to travel at half speed across the Pacific so they arrive at the holding area later.
They have reduced the visible back log right off the port by moving it to a larger holding area offshore and slowing the pace of new arrivals, kind of a kick the can approach.
IronLionZion
(45,615 posts)then it's improving flow in the pipeline even though the backlog is increasing with new ships joining the line. Since ports have limited capacity, it's a way to manage the flow to keep things moving through.
madville
(7,413 posts)They can say we reduced the ship backlog at the port, then leave out that the ships are simply now holding out of sight 150 miles offshore lol.
greenjar_01
(6,477 posts)Midnight Writer
(21,830 posts)He then went on a rant about the economic hardships Americans endured during Reagan's term.
Of course, he never once mentioned Reagan's name, just the date.
He knows his listeners are too ignorant to put that together.
onenote
(42,821 posts)Inflation peaked during the Carter years and then dropped during the Reagan years.
https://www.thebalance.com/u-s-inflation-rate-history-by-year-and-forecast-3306093
rockfordfile
(8,709 posts)It's because of the pos Reagan years that our country is in this mess. Way to many goods are made overseas.
DENVERPOPS
(8,888 posts)are calculated were "doctored" dramatically by the HW/Cheney/Rumsfeld administration under Reagan.
They changed all kinds of things to get a lower Consumer Price Index, Inflation and un-employement so they could claim Trickle Down Economics was working............I remember when they raised the base number of employees by adding in the Military to the base number. That way it would lower the un-employed percentage...LOL, have you ever heard of an "unemployed" person in the military??????
So many pay increases, SSI increases, union wages, government worker wages, etc are tied to the inflation/CPI, that they will try to fo anything to rig things, to keep those %ages below reality......
The government's increase in SSI payments for 2022, calculated by inflation %age in 2021 was laughable..........