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Inflation for businesses reached a rate of 8.3% year-on-year, the highest level in the metric since at least 2010.
The Bureau of Labor Statistics announced that the producer price index – which monitors changes in input prices for businesses and other domestic producers – rose 0.7% in August, slightly beat the 0.6% rate predicted by economists.
The producer price index is now increasing at a rate of 8.3% year-on-year, the fastest since November 2010. Business fox reports that the rate has now increased for the fifth consecutive month.
The Bureau of Labor Statistics explained that much of the inflation in final demand goods was due to rising meat prices:
About a quarter of the increase in prices for final demand products in August can be attributed to an 8.5% increase in the meat index. Prices for residential natural gas, industrial chemicals, processed baby chickens, motor vehicles and steel products also increased. In contrast, the index for scrap and scrap fell 3.7%. The prices of diesel fuel and natural, processed and imitation cheese have also fallen.
Rising inflation in the United States – which signals a decline in the purchasing power of businesses and consumers – is worrying economists and lawmakers.
Representative Kevin Brady (R-TX) – the leading member of the House Ways and Means Committee, which is responsible for determining taxes and other tax policy measures – said The daily thread in an interview in August, inflation under President Joe Biden is the “mirror image” of trends under President Donald Trump.
“Wages have increased twice as fast as prices,” Brady noted. “The purchasing power of every family increased under President Trump. In fact, in 2019 household income grew more in just one year than in the eight years of the Obama-Biden administration. “
In contrast, inflation has been exceeding real wage growth for most of 2021.
Brady argued that the Federal Reserve and the White House share responsibility for rising inflation levels because both “deny the severity and duration” of the price hike. “The Fed and the White House have been very slow to recognize the role they play in driving these higher prices.”
“If we continue with the emergency spending and widening of government checks as proposed by the President – and the fact that workers are not returning to the workforce – what you’re going to see is is the demand inflation we see today turning into “cost inflation” – longer term “push inflation”.
Indeed, Biden has consistently dismissed concerns about higher inflation.
“We also know that as our economy has picked up steam we have seen price increases,” he said in a recent speech. “Some people fear this is a sign of persistent inflation. But that’s not our point of view. Our experts believe and the data shows that most of the price increases we’ve seen are – were expected and should be temporary. ”
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