Labor Department: Wholesale inflation still on the rise
Inflation has spiked by 8.3 percent since a year ago, the largest increase since the Labor Department started calculating the yearly average in 2010. Core producer prices rose by 0.6 percent from July to August. The most significant increases were in food costs. The price of beef increased by more than half, and poultry costs rose by 11 percent. Natural gas and motor vehicle prices also rose significantly.
When will prices stabilize? The Federal Reserve still says the price increases are temporary, but economists estimate supply chains will continue to struggle with worker shortages for several months while the delta variant delays economic recovery. Job growth stalled in August. While employers added 1 million jobs per month in June and July, the new jobs number declined to 235,000 in August—a third of economists’ projections.
Dig deeper: Read Charissa Koh’s report in Compassion on President Joe Biden’s expansion of food stamps.
Editor’s note: WORLD has corrected the amount of the change in the price of beef in this report.
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