Biden's America: US wholesales prices spike to annual record in September

[Counselor706]

US wholesale prices jumped 8.6 percent in the 12 months ended in September, the biggest increase in over a decade, according to government data released Thursday.

Double-digit jumps in food and energy costs compared to last year drove the record gain in the producer price index (PPI), the largest since the data were first calculated in November 2010, the Labor Department reported.

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[Champakian]

News that the September Consumer Price Index (CPI) rose by 5.4 percent on a year-over-year basis should be evidence enough for Federal Reserve Chair Jerome Powell, White House economists, and even the president to admit that we have more than a temporary inflation uptick on our hands. Better yet, it's proof that we should avoid adding fuel to the fire, even if it means cutting back on President Joe Biden's multi-trillion-dollar American Rescue Plan.

Until recently, evidence of inflation exceeding 2 percent—the Fed's traditional goal for inflation—has been dismissed as temporary or transitory, and for good reason. Newly printed stimulus money has been passing through the system. This, accompanied by serious supply-chain disruptions, might be over in another 12 months—if we're lucky.

Then in August, the Biden administration indicated that 2021's economy would show as much as 4.8 percent inflation—but, with an optimistic spin, would fall to 2.5 percent the next year. Meanwhile, there is some stimulus money pending in the yet-to-be determined infrastructure bill, and that complicates the issue.

https://reason.com/2021/10/13/high-inflation-is-here-to-stay/