While inflation has hit a new high at 9.1% in the Consumer Price Index, things are looking even worse for producers.
According to the Bureau of Labor Statistics, the Producer Price Index (PPI) just hit a year-over-year increase of 11.3%!
From the Daily Wire:
The index's rise was predominantly driven by energy costs surging year-over-year by 10%. Gas prices reached $5.00 per gallon in early June before falling to a national average price of $4.61 as of Thursday, according to AAA.
The gas crisis is making it much more costly for producers to produce. And whatever portion of that cost that can't be passed down to the consumer is absorbed by the producer, thus the 11.3% increase from last year.
While 99% of executives report higher operating costs, 76% are passing more of their expenses to consumers by raising prices. Among the causes for the higher prices reported by the respondents are efforts to retain employees (77%), persistent supply chain issues (74%), and hiring difficulties (71%).
Employees can't afford to keep working at these jobs, the companies are still throttled by the Buttigieg/Biden supply chain crisis, and people don't want to work for a living.
All of these things combined have led to these disastrous inflation statistics.
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