Posted on 05/12/2022 9:40:03 AM PDT by Red Badger
Wholesale prices accelerated more than expected in April as inflation continued to hover near a 40-year high as a result of strong consumer demand, pandemic-related supply chain snarls and the Russian war in Ukraine.
The Labor Department said Thursday that its producer price index, which measures inflation at the wholesale level before it reaches consumers, climbed 11% in April from the previous year. On a monthly basis, prices grew by 0.5%. Although that marks a slight moderation from March's reading of 11.2%, the gauge still came in higher than the 10.7% forecast from Refinitiv economists, suggesting inflationary pressures remain strong.
HIGH INFLATION COULD BE 'PAINSTAKINGLY SLOW' TO COME DOWN
Core inflation at the wholesale level, which excludes the more volatile measurements of food and energy, increased 0.6% for the month, following a 0.9% increase in March. Over the past 12 months, core prices were up 6.9%.
Overall, prices for goods jumped 1.3% last month, the fourth consecutive rise and the biggest contributor to the headline inflation figure. That included gains for items like motor vehicles, diesel fuel and eggs. Prices for construction also soared by 4% in April, while prices for services held steady last month.
Energy moderated in April, rising by 1.7% after surging 6.4% the previous month following the Russian invasion of Ukraine.
The surge in wholesale prices comes on the heels of a separate Labor Department report released on Wednesday that showed the consumer price index climbed 8.3% in April from the previous year, far more than economists expected. Consumers are paying more for everyday necessities, including groceries, gasoline and cars.
Sky-high inflation has created a political headache for President Biden – who has blamed rising prices on the war in Ukraine, as well as pandemic-related disruptions in the supply chain – and has forced the Federal Reserve to chart an even more aggressive course to cool demand and bring inflation down.
inflation housing Stephen Legault applies roofing material to a home under construction in San Diego, California, on Dec. 20, 2005. (Jack Smith/Bloomberg via Getty Images / Getty Images)
The Fed now faces the tricky task of cooling demand and prices without inadvertently dragging the economy into a recession. Policymakers raised the benchmark interest rate by 50 basis points last week for the first time in two decades and have signaled that more, similarly sized rate hikes are on the table at coming meetings as they rush to catch up with inflation.
Like 10.7% would have been good news?
And we got 5.9% COLA...
A special thanks to the brain
challenged pervert hiding out in the WH for his part in breaking America.
Just another way that the Dems are punishing America.
Most prices didn't come down after Carter and Ford...the 'rate' of inflation came down, but prices stayed high.
81 million voters can’t be wrong
Wasn’t it already at a 40 year high? So if it goes up another 11%, how is it still NEAR a 40 year high?
Over 43 MILLION are on Sic Sec-—the COL for 2023 better be solid.
look at the bright side, by the end of summer they will be printing $500 and $1000 dollar bills again, just so people can fill their gas tank to go buy groceries...
Maybe they meant 4 weeks.
Brandon is breaking records left and right..well,mostly left.
People on entitlement programs will be the least affected, as usual.
At least you got one.
45 years ago companies were downright niggardly to give COLA raises. Only when poaching started in the only growth industry at the time, oil and gas, did they finally admit something like reality.
I quit a company E....n because the meat cutters locally were on strike for more than I was making or the new hires were making.
Hardly any prices ever do come down, they love the profits too much and can always find an excuse to leave prices high.
Besides, where else can you buy?
Totally unexpected!
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