Wholesale inflation in the United States shot up 10% last month from a year earlier

Wholesale inflation in the United States shot up 10% last month from a year earlier piling pressure on squeezed consumers

  • Wholesale inflation in the United States rose 10 percent last month from one year earlier according to the producer price index
  • Wholesale energy prices, meanwhile, were up 33.8 percent over the past year, and food prices were up 13.7 percent
  • The report did not, however, include price changes after February 15 – missing a spike in energy prices after Russia invaded Ukraine
  • But excluding volatile food and energy prices, wholesale inflation rose 0.2 percent from January and 8.4 percent from February 2021

Wholesale inflation in the United States shot up 10 percent last month from a year earlier – another sign that inflationary pressures remain intense at all levels of the economy more than one year into Biden’s presidency.

The Labor Department said Tuesday that its producer price index – which tracks inflation before it hits consumers – rose 0.8 percent from January. The increases were in line with economists’ forecasts.

Wholesale energy prices were up 33.8 percent over the past year and food prices were up 13.7 percent.

The report did not include price changes after February 15, missing a spike in energy prices when Russia invaded Ukraine nine days later.

But excluding volatile food and energy prices, wholesale inflation rose 0.2 percent from January and 8.4 percent from February 2021.

Last week, the government also reported that surging gas, food and housing costs pushed consumer prices up 7.9 percent in February from a year earlier – the sharpest spike since 1982.

‘February marks another month of skyrocketing inflation under Joe Biden’s failed presidency,’ Sen. Rick Scott, a Republican from Florida, said of the report.

‘Biden and Democrats in Washington think the American people are stupid,’ he continued. ‘They honestly believe they can blame the skyrocketing inflation we have seen month after month for over a year on Putin, and just give themselves a free pass for more reckless government spending and radical socialist policies.

‘Here are the facts: Biden’s reckless spending is … exactly what is causing this crisis, Biden’s war on America energy is significantly contributing to rising gas prices, and hardworking Americans, and poor families like mine growing up, are struggling more than ever .

‘Biden can play the blame game and point fingers al he wants, but the American people can see straight through his lies.’

FILE - In this Tuesday, June 15, 2021 file photograph, beef is displayed in the meat department at Lambert's Rainbow Market, in Westwood, Mass.  Wholesale inflation in the United States surged again last month, rising 9.7% from a year earlier in a sign that price pressures remain high at all levels of the economy.  The Labor Department said Tuesday, Feb.  15, 2022, that its producer price index - which measures inflation before it reaches consumers - jumped 1% from December.  (AP Photo/Charles Krupa)

FILE – In this Tuesday, June 15, 2021 file photograph, beef is displayed in the meat department at Lambert’s Rainbow Market, in Westwood, Mass. Wholesale inflation in the United States surged again last month, rising 9.7% from a year earlier in a sign that price pressures remain high at all levels of the economy. The Labor Department said Tuesday, Feb. 15, 2022, that its producer price index – which measures inflation before it reaches consumers – jumped 1% from December. (AP Photo/Charles Krupa)

Inflation, dormant for four decades, re-emerged last year as the United States rebounded with unexpected speed from 2020´s short but devastating coronavirus recession.

Caught off guard, companies scrambled to find supplies and workers to meet an unexpected surge in orders from customers flush with government relief checks. Factories, ports and freight yards came under strain. Shipments were delayed and prices began to rise.

Tensions over Ukraine have only pushed commodity prices higher.

‘Inflation in the pipeline is showing few signs of decelerating in the near term, especially as the Russia-Ukraine war wreaks havoc in energy and other commodity markets,’ economists Mahir Rasheed and Kathy Bostjancic of Oxford Economics wrote in a research note.

‘Higher input costs will keep producer prices frustratingly elevated … likely feeding higher consumer prices in the coming months.”

To combat rising prices, the Federal Reserve is set to hike interest rates several times this year, starting this week with a quarter-point rise in its benchmark short-term rate.

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