On March 15, the Bureau of Labor Statistics released its latest report tracking the Producer Price Index (PPI), which “measures the average change over time in the selling prices received by domestic producers for their output.”
According to the report, “Prices for final demand goods jumped 2.4% in February, the largest advance since data were first calculated in December 2009.” Moreover, as the report notes, “final demand prices moved up 10.0% for the 12 months ended in February.”
Obviously, this is not good news for American consumers, who will inevitably bear the brunt of these price hikes. Just last week, the Consumer Price Index (CPI) showed that inflation is already at a 40-year high of 7.9%. Based on the latest PPI report, inflation is not likely to decline anytime soon. In fact, it is almost assuredly going to increase even more, seeing as how the PPI report is a leading indicator of the CPI.