US Producer Prices Surge to a New Record
The US Department of Labor says its Producer Price Index (PPI) jumped 8.3% in August, which is the biggest since November 2010.
Consumers in the United States are in for even harder times, as rising inflation has been confirmed by the US Department of Labor. The Department's PPI, which measures the prices businesses fetch for the goods and services they sell, rose by 8.3% in August, compared to last year.
The PPI was first measured in November 2010, and this rise marks the biggest advance so far recorded.
As the world recovers from the coronavirus pandemic, inflation has become a staple of all these economies due to supply and labor troubles. If we leave out food and energy, which are more volatile markets, core producer prices rose 6.3% from last year, which is also the largest rise recorded since 2014.
As prices increase for suppliers, so will they for consumers. However, Federal Reserve Chairman Jerome Powell says this inflation is temporary due to the post-pandemic economic bottleneck, but low-income families will have to face even more difficult times since an even larger slice of their income will be eaten away by the inflation.
Moderate inflation is a good thing for economies in general, but if inflation spins out of control, the US economic recovery will be derailed.