Wholesale inflation over past year jumps by record amount

[left-of-center2012]

Inflation at the wholesale level jumped 1% in June, pushing price gains over the past 12 months up by a record 7.3%.

The Labor Department reported Wednesday that the June increase in its producer price index, which measures inflation pressures before they reach consumers, followed a gain of 0.8% in May and was the largest one-month increase since a 1.2% rise in January.

For the 12 months ending in June, wholesale prices are up 7.3%, the largest 12-month increase since the government began the current series on wholesale prices in 2010.

“Inflation has increased notably and will likely remain elevated in coming months before moderating,” Fed Chairman Jerome Powell said.

https://apnews.com/article/business-inflation-26d4dd1aaac967ad08d8e926bfcbff95

[genxlib]

1. Important distinction

In the article that I clicked through to, it noted this

One reason why year-over-year inflation readings are now so high is that the most recent prices are being measured against the sharp price declines that followed the eruption of the pandemic in March of last year. That statistical distortion began to fade in June and will no longer be a factor when July’s year-over-year inflation figures are released next month.

Looking past those distortions, prices are rising faster than they did before the pandemic but not as much as the recent monthly numbers suggest. Greg McBride, chief financial analyst at Bankrate, noted that compared with June 2019, inflation has risen at about a 3% annual pace over the past two years. That is up from a 2.6% annual inflation pace from May 2019 to May 2021.

Any article that does not mention a percentage increase relative to unprecedented lows during the lock down is borderline journalistic malpractice

[NCDem47]

2. Look for Rs to hammer Ds on this.

And they won't provide the context that needs to go with this story.

They'll set up a narrative for midterms that Ds are tanking the economy.

UGH.

[ansible]

5. It's getting so bad that it's raising food prices now

Biden needs to do something about this or we're fucked, when food gets affected things are getting really REALLY bad

[NCDem47]

6. Kitchen table and wallet issues...

When voters feel it, watch out politicians. Very perilous.

[left-of-center2012]

3. "borderline journalistic malpractice"

[ProfessorGAC]

7. Agreed!

This is a statistic without context to create a good headline.
The article states that the value should moderate, but didn't consider that clearly stated assessment in the headline or lede.

[Midnight Writer]

4. And I have a mutual fund that was up over 60%, if you measure from April 2020 to April 2021

But since in April 2020 it was down over 45% from its high, that gain is a meaningless figure.

This article, and others I have seen like it, are intentionally misleading.

I believe it is intended to kill spending plans by Democrats, as increased government spending often does result in some inflation.