Producer prices rise 8.6%, matching September record high

[mahatmakanejeeves]

Source: Associated Press, via the Washington Post

Business

Producer prices rise 8.6%, matching September record high

By Paul Wiseman  AP
Today at 8:40 a.m. EST

WASHINGTON -- Inflation at the wholesale level rose 8.6% last month from a year earlier, matching September's record annual gain and offering more evidence that inflationary pressures are not yet easing.

The Labor Department reported Tuesday that its producer price index -- which measures inflation before it hits consumers -- rose 0.6% last month from September. Excluding volatile food and energy prices, wholesale inflation was up 0.4% in October from September and 6.8% from a year ago.

More than 60% of the September-October increase in overall producer prices was caused by a 1.2% increase in the price of wholesale goods as opposed to services.

Mostly dormant for decades, inflation has returned to the United States this year. The economy's strong rebound from the 2020 coronavirus caught many businesses by surprise. Their scramble to meet unexpectedly strong demand has created shortages of labor, raw materials and goods and snarled traffic at ports and freight yards. The result has been higher prices, and the supply squeeze is expected to last at least well into 2022.

On Wednesday, the Labor Department will release its consumer price index for last month. According to a survey of economists by FactSet, it is expected to show that consumer prices rose 0.5% from September and 5.8% from a year earlier -- beating September's 5.4% year-over-year gain, the fastest since 2008.

Read more: https://www.washingtonpost.com/business/producer-prices-rise-86percent-matching-september-record-high/2021/11/09/9b0ce0e0-4162-11ec-9404-50a28a88b9cd_story.html

---

He means at an annual rate, of course; year over year, not for the month of September. From the source:

PPI for final demand advances 0.6% in October; goods rise 1.2%; services increase 0.2%

The Producer Price Index for final demand increased 0.6 percent in October, as prices for final demand goods rose 1.2 percent and the index for final demand services moved up 0.2 percent. The final demand index rose 8.6 percent for the 12 months ended in October.

https://www.bls.gov/news.release/ppi.nr0.htm

[Calista241]

1. So what are Biden and the Fed going to do about this?

Cause if they just go on doing nothing, we're going to be routed out of Congress next year.

When Manchin says "we need to look at inflation and how it affects our economy" this is what he means. If anyone is looking for ammunition to kill the BBB, this this report screaming "inflation" for several months in a row is all they need.

[mahatmakanejeeves]

4. The TV commercials write themselves.

Ominous minor piano chords. Grainy footage with streaks as the old film passes through the projector. The Voice of Doom narrating.

[MichMan]

20. Don't even need commercials

People see it for themselves every single day

People buying gas, groceries or heating their homes don't need a TV commercial to tell them they have less disposable income then they did before.

[HariSeldon]

5. Federal taxes stifle inflation

Tax (preferably the rich) and the inflation will go away. Federal taxes that are not matched with spending increases eliminate money from the economy and make money more valuable, countering inflationary pressures. If the rich really hate inflation, they'll "put their money where their mouth is" and pay the taxes. And, at least from my view as one of them, the non-rich won't get too bent out of shape over taxes on the rich, even if they don't "fund" spending.

[Calista241]

7. I don't really think the rich care if a gallon of milk costs $5 today.

And how long they could tolerate inflation if an open question, but it's for sure longer than the 1 year until November 2022.

[Elessar Zappa]

11. What can Biden do?

I’m seriously asking. I was under the impression that it’s beyond his control.

[tenderfoot]

19. A better question is what Republicans intend on doing anything if at all about it?

You're concerned that this will cost Biden, so tell us why the gop will get support as result.

[MichMan]

2. According to some it is only transitory and actually is a good sign for the economy

Not sure many voters are seeing it that way however.

[durablend]

3. And those here that are saying

"Whatever, no big deal" better enjoy being kicked out next year.

[The Mouth]

8. The idiots downplaying this, or rationalizing it

will be more responsible for Trump 2024 than any Republican, Russian, or Proud Boy

Anyone who doesn't think inflation is a killer is an idiot, and a callous one at that.

[Elessar Zappa]

12. It is a big deal but

there are no easy solutions or quick fixes.

[doc03]

6. Look at gas prices and Biden's poll numbers. Every time gas goes up a couple cents

his polls go lower. US I bonds that are based on inflation are paying 7.12% on bonds purchased
from Nov 1, 21 to May 1, 2022. That is the second highest rate they have ever paid. Inflation killed
Jimmie Carter's presidency.

[OneCrazyDiamond]

9. We need to stop burning carbon.

High legacy energy prices are a key to driving that change. The alternative makes covid look tame.

[The Mouth]

13. We need to elect more Democrats

high gas, energy, and consumer prices are going to make that damned difficult.

We can't do jack about climate change if the Republicans get pack in power, and $4 a gallon gas is the BEST way to do that.

[OneCrazyDiamond]

14. If electing democrats requires cheap legacy energy,

then we rule over the extinction of the planet. I think it better to make green energy the cheapest, not poison fuel.

[The Mouth]

15. Good luck with that

Gas over $3 = Trump 2024.
Inflation over 4% = Trump 2024 with Repub supermajorities.

Americans need gasoline and need it affordable.

Inflation kills the party in power.

Facts; all the data about climate change, green energy, renewables doesn't mean ANYTHING if the republicans get back in. People can prattle about renewables or caterwaul about climate change all they want, but without keeping the white house it's just flapping lips and masturbating on the keyboard.

NOTHING matters if we don't win. We won't win if inflation and gas prices in particular don't come down.

[OneCrazyDiamond]

16. Got it.

Americans need gasoline and need it affordable. Without that we don't win the Whitehouse in 3 years, and the climate should come secondary that. I disagree, but am but it doesn't matter.

Cheers.

[The Mouth]

17. Well, the climate *should* come first

... should....

[OneCrazyDiamond]

18. I think it is the way we win.

The Green New Deal, and the economy it brings should keep us in charge for a generation. We just have have the courage to follow President Biden's lead. I see two Senators in our way (the GQP are more of a drag then a road block).

[The Mouth]

21. I think with inflation what it is now, we lose

and the Republicans, with control of both houses and the presidency, decide how to actually SPEN D the money, and it ain't going to be on mitigating climate change, or social justice, or any actual infrastructure they can't milk for every cent.

[madville]

10. The recent line I have heard is

“inflation is good for the economy long term”

There is some truth to that, but rapid inflation in the short term gets the party in power fired quickly, and unfortunately in that respect, Democrats are currently in charge.

[rockfordfile]

22. "The economy's strong rebound from the 2020 coronavirus caught many businesses by surprise." BS

I wouldn't trust anything coming out of their mouths. They're just un-American pos. They lost the election and their un-American pos lost.