In an unexpected development that could spell ongoing challenges for the U.S. economy, the U.S. Labor Department reported Thursday that inflation at the wholesale level rose significantly in February 2024.
The department’s Producer Price Index (PPI), which measures inflation at the wholesaler level, i.e. before it impacts consumers, jumped 0.6 percent from January to February. This increase outpaced the modest 0.3 percent gain forecasted by federal economists. Over the past 12 months, the PPI has climbed 1.6 percent, marking the highest annual surge since September 2023.
Final demand goods experienced a 1.2 percent price increase in February, the most significant rise since August 2023, with nearly 70 percent of this growth driven by a 4.4 percent jump in the index for final demand energy.
Gasoline prices soared 6.8 percent, contributing one-third of the total increase in final demand goods. Other sectors, including diesel fuel, chicken eggs, jet fuel, beef and veal, and tobacco products, also saw price increases.
There’s some good news, however, if you’re a big consumer of hay, hayseeds, and oilseeds: these commodities witnessed a price decline of 8.3 percent.
Services inflation rose as well, with final demand services ticking up by 0.3 percent in February, led by a 0.5 percent increase in services less trade, transportation, and warehousing. Transportation and warehousing services themselves saw a 0.9 percent price hike. However, final demand trade services, which track the margins received by wholesalers and retailers, experienced a 0.3 percent decrease.
One day before the release of the PPI inflation numbers, President Joe Biden assured Americans that wages were rising faster than inflation.
“And now we have among the lowest inflation rates of any country in America,” he said.
“Any country in America”????
As long as the government continues massive over spending and money printing inflation will continue to go up. Biden and Kleptocrats are increasing the National Debt at a rate of a trillion dollars every 90-100 days which is a record fast pace. Anyone with the most basic knowledge of economics knows that government money printing is ALWAYS inflationary. Time for massive spending cuts across all parts of the government except military and law enforcement. The billions of recent needless spending for IRS and green energy should be a particular focus of the cuts.
Thanks for the good news Joe. Spot on!!
Bidden is still spending like a fool what else but inflation. And our four dopes in DC go along with it. I for one am out of money and can not pay anny more.
My wages did not go up that much But my taxes will . Thanks Angas!
The “government continues massive over spending” but the ILLEGALS love it Joe. My money for their fun Angus, Their independent. Do not say a word Pingree
But…..but……but Pres Biden told us just last week that he has totally fixed inflation in America and that his administration is on top of this. Funny every time I go to the grocery store these days I end up spending more money on the usual things I buy. This wholesale inflation figure is not the least bit of a surprise. Next the stupid democrats are going to want to spend 50 trillion of “funny money” to buy everyone’s groceries……in order to get you to vote for the dems in the next election. What we need to do is to cut “government” down to the just the very small outfit that we really need and get rid of the parasites.