The Producer Price Index (PPI), which gauges the average fluctuation in selling prices received by domestic producers over time, rose by 9.6% in November from a year ago.
It is the fastest rate ever measured since the data was first collected in November of 2010 and the eighth consecutive month of producer price increases.
It represents a faster rate than the 9.2% predicted by economists and is a clear sign that inflation pressures are still an active concern.
CNBC blames “supply chain bottlenecks and surging demand” as the primary drivers of the inflation.
“Final demand energy prices jumped another 2.6% in November despite sliding crude prices, while food was up 1.2%. Transportation and warehousing increased 1.9%, while portfolio management spiked 2.9%,” they write.
Core producer prices – which take out food and energy – also increased at a record 7.7%. This comes after reports showed consumer inflation rose 6.8% in November – a 39-year high as consumer prices soar ever higher.
Producer Price Index (PPI) came in at 9.6% y/y, higher than the estimate of 9.2% and Oct’s 8.8%. New record high. Strong increases across all categories. We started 2021 with PPI below 2% y/y and now we’re nearly at 10%. pic.twitter.com/IhMz8iv0F0
— Liz Young (@LizYoungStrat) December 14, 2021
RELATED: Nearly 70 Percent Disapprove Of Biden’s Handling Of Inflation
Support Conservative Voices!
Sign up to receive the latest political news, insight, and commentary delivered directly to your inbox.
President Biden over the summer promised that inflation at the time was merely transitory, a notion these latest numbers suggest might be incorrect.
“I want to be clear: my administration understands that were we ever to experience unchecked inflation in the long term, that would pose a real challenge for our economy,” he said in July.
“While we’re confident that isn’t what we’re seeing today, we’re going to remain vigilant about any response that is needed.”
Biden says “unchecked inflation over the long term would pose a real challenge to our economy” but adds he’s “confident that isn’t what we’re seeing today” pic.twitter.com/FDGUKGBpmc
— Bloomberg Quicktake (@Quicktake) July 19, 2021
Federal Reserve Chairman Jerome Powell recently, perhaps seeing the writing on the wall, admitted inflation will rise and suggested the term “transitory” should be retired.
“We tend to use [the word transitory] to mean that it won’t leave a permanent mark in the form of higher inflation,” he said. “I think it’s probably a good time to retire that word and try to explain more clearly what we mean.”
It’s time to retire the word transitory on describing inflation, says Fed Chair Jerome Powell during Senate testimony on the economy https://t.co/DxfjyS7Jpr pic.twitter.com/WzW2rzqt1B
— Bloomberg (@business) November 30, 2021
RELATED: Psaki Confronted, Claims ‘No Economist’ Is Predicting Higher Inflation From Massive Spending Bill
Money Out Of Your Pocket
Biden has additionally argued that Americans have more money in their pocket since he became President, something provably false but also undermined by the latest Producer Price Index numbers.
CNBC concludes that “inflation has taken away all the wage gains for workers and then some.”
In reality, real average hourly earnings decreased by 1.9% over the past year.
“Unfortunately for the 71% of households making less than $40,000 and experiencing financial hardship due to Biden’s hidden inflation tax, a change in the administration’s vocabulary is little solace,” Pigott said in a statement.
“Especially since Biden wants to double down on the same reckless agenda that will only make Bidenflation even worse.”
Administration officials have been pretty clear they don’t intend to take the inflation problem seriously.
White House Chief of Staff Ron Klain tweeted an article arguing that inflation is a “high-class problem.”
White House Press Secretary Jen Psaki insisted inflation isn’t going to be exacerbated by more government spending.
NBC’s Peter Alexander: “Americans are seeing their dollars, their paychecks stretched right now. Why should Americans not be concerned that injected another $1.57 trillion or more would raise inflation?”
Psaki: “B/c no economist out there is projecting that[.]”
Um, wut? pic.twitter.com/Cz4vcguSvs
— Curtis Houck (@CurtisHouck) November 15, 2021
“No economist out there is projecting that this will have a negative impact on inflation,” Psaki replied when a reporter questioned “injecting another $1.57 trillion” of spending into the economy.
Economists have since predicted inflation will remain above 2% possibly over the next three years “as a result of rising wages and strong demand for goods and services.”
Now is the time to support and share the sources you trust.
The Political Insider ranks #15 on Feedspot’s “Top 70 Conservative Political Blogs, Websites & Influencers in 2021.”
Read this Next on ThePoliticalInsider.com‘Conservative’ Supreme Court Rejects Religious Objections To New York Vaccine Mandate
Leave a Comment
COMMENTS POLICY: We have no tolerance for messages of violence, racism, vulgarity, obscenity or other such discourteous behavior. Thank you for contributing to a respectful and useful online dialogue.