(RepublicanInformer.com)- A worse and surprising statistic showed that producer prices in the United States rose by 11 percent in April compared with the same month of the previous year.
It is anticipated that the weight of inflation will continue to be placed on consumers and producers for at least the next several months as the cost of food and transportation continues to add to the overall burden of inflation.
On Thursday, the Labor Department said that its producer price index, which measures inflation before it reaches consumers, increased by 0.5 percent in April. This index monitors inflation before it reaches producers. However, the increase was not as dramatic as the previous month’s number, which had increased by 1.6 percent.
On the bright side, the year-over-year growth in April dropped from the 11.5 percent annual gain in March, marking the first reduction in that statistic since December 2020. This was the first time the figure had decreased since the beginning of the year.
The growth for the month of 0.5 percent was also the weakest in the past seven months combined.
However, price increases continue at historically rapid rates. The price of food increased by 1.5 percent from March to April, but the cost of transportation and warehousing skyrocketed by 3.6 percent.
The report on producer prices was released just one day after the consumer pricing data for April was released by the United States Department of Labor. The annual inflation rate was 8.3 percent higher last month than it was the previous year. April’s rate was a little lower than March’s four-decade high of 8.5 percent, while inflation gained 0.3 percent in April, the lowest monthly increase in eight months.
Inflation rose 0.3 percent in April from March, marking the smallest monthly increase in eight months.
An Associated Press Economics Writer named Christopher Rugaber commented on the news, stating that despite its findings, there were plenty of signals in the consumer pricing data that inflation will continue stubbornly high, presumably throughout the remainder of this year and into 2023.
The increase in apartments that have stopped accepting monthly rent payments in favor of finding new tenants has caused rent costs to skyrocket. The price of airline tickets reached its highest level since the late 1960s, while the food price continued to climb steadily higher.
After reaching a new all-time high the previous month, the FAO Food Price Index, which monitors changes in the prices that consumers pay for food worldwide, showed a reduction of 0.8% in the most recent month. After reaching record highs, the cost of seed oils and other grains, impacted by the conflict in Ukraine, began to fall.
Biden continues to say that this is “Putin’s fault.”
