The Department of Labor’s Producer Price Index, a key inflation metric, rose 0.6% in October, matching the record annual increase of 8.6% broken in September.
“Elevated demand for goods over services again led the inflation story, with the price rises for final demand goods accounting for more than 60% of the index’s increase. Goods prices rose 1.2% compared with just a 0.2% increase for services, while construction prices jumped 6.6%,” CNBC reported. “One-third of the increase in goods prices came from soaring gasoline, with prices rising 6.7%. Beef and veal prices represented the other side of the ledger, posting a collective decline of 10.3%. The index for light motor trucks, a key driver of inflation this year, moved lower as did residential electric power.”
“On the services side, more than 80% of the increase in final demand services price increases came from autos and auto parts, which increased 8.9%,” the outlet added. “The PPI report is one of two key inflation readings this week. The Labor Department on Wednesday will release the October consumer price index, which is expected to show a 0.6% monthly increase for all goods, translating into a 5.9% annual gain.”
The Biden administration’s inflation crisis began in April 2021 as inflation surged to the highest level since the Great Recession. According to Treasury Secretary Janet Yellen, the inflation crisis is expected to continue through next year.
“On a twelve-month basis, the inflation rate will remain high into next year because of what’s already happened. But I expect improvement by the end of — by the middle to end of next year, second half of next year,” Yellen said. “We are going through a period of inflation that’s higher than Americans have seen in a long time.”
