The economy is in dire straits by almost any measure. There are many measures of inflation that aren’t good. It’s getting worse, according to new data.
The producer prices index shows similar data to last week’s reporting.
New York (CNN Business). America’s high prices did not change in January. Another indicator of inflation was the price rise last month.
The Bureau of Labor Statistics reported Tuesday that the producer price index, which measures the average price changes America’s farmers have experienced over time, increased 9.7% in January. It was not adjusted for seasonal swings. This was much higher than economists expected, but a decrease of 0.1 percentage points from the revised series was high at the end of 2021.
Prices rose by 1% in January, adjusted for seasonal swings. This was a disproportionate increase to December’s price rise and economists’ expectations. The forecasts were for a 0.5% increase in prices.
The inflation gauge saw 0.9% growth in January after excluding food, energy, and trade services. This is the largest increase since January 2021. Core prices increased 6.9% in the 12-month period. This is a decrease of 0.1 percentage points compared to December.
It does not seem like there is an end in sight. Consumers in America are seeing steep price increases across the board and no signs that inflation is decreasing. This has made a lot of Democrats nervous with Joe Manchin essentially stating that the Build Back Better plan was dead and Nancy Pelosi trying her best to spin the situation away. However, the spin isn’t fooling consumers. Things are getting worse.
Problem is, the Biden administration cannot do much to stop what’s going on. The economy was made worse by legislation that provided a lot of money. The energy sector was harmed by the reduction of jobs. They have done nothing to make things better so far.
Voters are also keenly aware. They feel this. It is something they feel. To dismiss it as Pelosi did only makes them even angrier. It is a major reason that both the Senate and House are involved. Nearly six out of ten Americans disapprove of Biden’s job performance.
Things will only get worse before they improve. There is no ceiling on inflation, or at least not one that we can see, and although the latest jobs report was positive, inflation continues to outpace wage growth and job numbers. The average American cannot get any relief.