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The federal government has confirmed that, only a day after the Consumer Price Index revealed inflation during August was at 8.3%, inflation was hitting producer wholesale prices at a rate of 8.7%.
The Bureau of Labor Statistics said the producers index was down only slightly from the previous month, when it was 9.8%.
The Washington Examiner said it appears that the producers’ index is «in retreat» after peaking at 11.5% in April and holding steady at about 10% during the summer months.
Chris Rupkey, of FWDBONDS, told the publication, «Net, net, factories aren’t manufacturing as much inflation for a second month in a row, so while inflation isn’t completely contained, there is hope that the diminished pressures on PPI goods prices will lead to less inflation in the future for the goods sitting on store shelves that consumers buy.»
The Biden economy’s inflation problem, however, is far from over.
Just a day earlier, the Consumer Price Index had revealed inflation at 8.3%, higher than expected and only fractionally lower than the 8.5% of the month before.
The stock market reacted with a collapse of more than 1,200 points
The report explained, «The consumer price index is more closely watched than the producer price index, so the worse-than-forecast report sent shockwaves through the economy. Investors began selling off assets as they bet on a recession that would send stocks even lower. U.S. stock markets had the worst day since 2020.»
Actually, the definition of a recession is two consecutive quarters of «negative growth» in the economy, meaning that it is shrinking.
In both the first and second quarter of 2020, Biden’s policies have led to those circumstances.
While inflation has been hitting Americans very hard, with gasoline reaching $6 a gallon before receding somewhat in recent days, and groceries up by double-digits, the Federal Reserve’s reaction also has been hurting consumers
The bureaucracy already has raised interest rates twice by 75 basis points this year, trying to slow down inflation, without a significant impact.
