Inflation Nation: Wholesale Prices Soar Record 8.6%

Inflation is becoming quite persistent.

New data from the Department of Labor released Tuesday shows that producer prices jumped 8.6% in the last year. This is the second straight month of record gains.

- Advertisement -

For the month of October, the Producer Price Index (PPI) rose 0.6% matching expectations. Core PPI (which examines inflation minus extra volatile food and energy prices) rose 0.4%, below the expected 0.5%.

On a yearly basis, the PPI rose 8.6%, while core PPI rose 6.8%.

The PPI measures inflation from the prospective of sellers rather than buyers. Typically, it’s seen as a forward looking indicator because it’s believed that sellers will eventually pass their higher costs onto their customers.

Already, the U.S. economy has seen evidence of that with consumer prices growing upwards of 5% for the last several months. Most recently, the Consumer Price Index posted a gain of 5.4%.

- Advertisement -

Related Articles

Stay Connected

- Advertisement -

Latest Articles