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Politics

Another Inflation Index Unexpectedly Jumps as Biden Policies Flounder

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We are entering a rather crucial stage for Joe Biden’s economic policies, and soon there will be no escape for the already-flailing administration.

Biden has now presided over the worst inflation in America in over 40 years, despite being gifted the inevitable end of the pandemic – an event that could have conjured a new “roaring twenties” here in the US.

Instead, prices for consumers are skyrocketing across the board, with gas and groceries unfortunately leading the way.

But now, in an even more worrisome bit of news, it looks as though producer prices are popping unexpectedly as well.

A key barometer of inflation on Wednesday showed prices paid to U.S. businesses rose more than expected in September, dashing hopes that the Federal Reserve might be able to take a softer approach to restoring price stability.

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The producer price index, which tracks prices paid to U.S. businesses for the goods and services they produce, rose 0.4 percent in September, the Department of Labor said. That was twice the monthly gain expected by forecasters.

A key barometer of inflation on Wednesday showed prices paid to U.S. businesses rose more than expected in September, dashing hopes that the Federal Reserve might be able to take a softer approach to restoring price stability.

The producer price index, which tracks prices paid to U.S. businesses for the goods and services they produce, rose 0.4 percent in September, the Department of Labor said. That was twice the monthly gain expected by forecasters.

But wait…there’s more:

On a 12-month basis, prices are up 8.5 percent. That’s one-tenth of a point more than what economists surveyed by Econoday expected.

The index fell by 0.2 percent in August and 0.4 percent in July, largely due to lower gasoline and oil prices. This was revised from the 0.1 percent decline originally reported for August.

Excluding food and energy, prices were up 0.3 percent in September. This measure of “core PPI” was also up a revised 0.3 percent in August. In the earlier report, core PPI was reported as rising 0.2 percent in August. Compared with a year ago, core PPI is up 7.2 percent, which is below the 8.1 percent year-over-year increase reported in August.

If Biden can’t get this economy under control before the midterms, the Democrats could find themselves in some electoral trouble.

But, if the White House punts this fiscal fiasco into the all-important holiday season, the consumer engine of this great nation could simply sputter out.

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About the Author:
As a lifelong advocate for the dream promised us in the Constitution, Andrew West has spent his years authoring lush prose editorial dirges regarding America's fall from grace and her path back to prosperity. When West isn't railing against the offensive whims of the mainstream media or the ideological cruelty that is so rampant in the US, he spends his time seeking adventurous new food and fermented beverages, with the occasional round of golf peppered in.




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