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Thursday, October 21, 2021

US wholesale prices rose record 8.6% over 12 months


WASHINGTON (AP) – Wholesale inflation rose 8.6% in September year-over-year, with the largest increase after a 12-month change first calculated in 2010.

The Labor Department said Thursday that the monthly rise in its producer price index, which measures inflationary pressures before they hit consumers, was 0.5% in September, compared with a 0.7% increase in August.

An 8.6% increase in the 12 months ended September, compared with an 8.3% increase in the 12 months ended August, the previous record 12 months.

On Wednesday, the government said retail-level inflation rose 0.4% in September and CPI rose 5.4% in the past 12 months, the fastest pace since 2008.

The jump in inflation this year reflects higher food and energy prices, as well as a range of other goods, from furniture to cars, as the pandemic disrupted supply chains and demand exceeded supply.

The wholesale price report showed that core inflation at the wholesale level, excluding volatile energy and food, rose 0.2% in September compared to August and was 6.8% higher over the past 12 months.

Almost 80% of the total increase in wholesale prices in the last month was due to a 1.3% rise in commodity prices, the largest increase since May. In September, 40% of the jump in commodity prices reflected the rise in energy prices. Service price increases rose 0.2% less.

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Wholesale food prices rose 2% in September, while energy prices rose 2.8%, the largest jump from a 5% rise in March.

President Joe Biden took action on Wednesday to address supply chain issues, including announcing that the Port of Los Angeles will begin operating 24 hours a day, seven days a week to eliminate bottlenecks at one of America’s largest ports.

Economists said the surge in wholesale and retail prices reflected the impact of the pandemic as strong demand meets supply chain problems.

“The impact of demand will weaken even further in the coming months,” said Rubila Farouki, chief US economist at High Frequency Economics. “But there is a risk of more persistent encounters from disrupted supply chains that could keep commodity prices and inflation high for longer than expected.”

The minutes from the September Federal Reserve meeting released Wednesday provided further signs that the central bank is preparing to start ditching its $ 120 billion monthly bond purchases, possibly at its next meeting in November, as a first step towards easing emergency support from the central bank. jar. the bank provided the economy.

World Nation News Deskhttps://www.worldnationnews.com
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