This morning, the US Bureau of Labor Statistics released an Economics News Release reporting that the Producer Price Index is up 8.4% for October–three times more than September’s reading, and six times more than October of 2020.
Producer Price Index is an economic metric of the change in selling prices of domestic goods. In sum, PPI is a gauge to indicate inflation from a producer’s perspective. Higher PPI = high production cost, and potentially higher prices.
According to the report, the jump is contributed to the increase in prices of wholesale goods, like food and gasoline, which has confluence with Americans who have voiced their concern about rising prices. The inflation rate for the US hit a 13 year high of 5.4% in September.
“One-third of the October advance in the index for final demand goods can be traced to prices for gasoline, which rose 6.7 percent. The indexes for diesel fuel, fresh and dry vegetables, gas fuels, jet fuel, and plastic resins and materials also moved higher.” The report included.
Americans all over the country has raised their concerns about the rising food prices–but the Biden Administration seems unmoving. Biden’s 1-trillion dollar spending bill was recently passed with a vote of 228-206. Earlier this year, Biden ensured the American people that inflation would be temporary, and is only the byproduct of the pandemic. However, with the onset of a supply-chain crisis, the printing of currency and the underperformance of the US economy, Biden’s projection about inflation aren’t holding any water.