Wholesale prices jump nearly 10% in 2021, another sign of growing inflation

[mahatmakanejeeves]

Source: CNBC

ECONOMY

Wholesale prices jump nearly 10% in 2021, another sign of growing inflation

PUBLISHED THU, JAN 13 2022 8:33 AM EST UPDATED 2 HOURS AGO

Jeff Cox
@JEFF.COX.7528 https://facebook.com/jeff.cox.7528
@JEFFCOXCNBCCOM https://twitter.com/JeffCoxCNBCcom

KEY POINTS
* The producer price index, a measure of wholesale prices for goods and services, increased 0.2% in December, below the 0.4% estimate.
* For all of 2021, the 9.7% gain was the biggest on record in data going back to 2010.
* Weekly jobless claims totaled 230,000, well above the estimate, though the four-week average of filings hit its lowest since 1973.

Wholesale prices rose less than expected in December but still set a new standard at a time when consumer inflation is running at a nearly 40-year high, the Labor Department said Thursday.

The producer price index, which measures prices received by producers of goods, services and construction, was up 0.2% for the month, half the 0.4% Dow Jones estimate.

However, on a 12-month basis, the index was up 9.7% to end 2021, the highest calendar-year increase ever in data going back to 2010. ... The monthly gain was a sharp drop-off from the two previous months, which showed gains of 1% in November and 0.6% in October.

A separate report Thursday showed that initial jobless claims for the week ended Jan. 8 totaled 230,000, well above the 200,000 estimate and a considerable increase from the previous week's 207,000.

{snip}

Read more: https://www.cnbc.com/2022/01/13/wholesale-prices-up-0point2percent-in-december-less-than-expected-but-still-a-new-12-month-record.html

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Let the complaints begin.

[WHITT]

1. Actually

both consumer and wholesale inflation DROPPED in Dec compared to Nov.

[The Mouth]

2. Source, please?

Thanks!

[WHITT]

3. Bureau Of Labor Statistics

[mahatmakanejeeves]

6. What he means is, even though there was an increase in inflation in both December and November, the

increase in December was less than the increase in November.

In that sense, the increase in December was a drop from the increase in November. There was still an increase in both months.

It's like saying that the increase in daylight hours in May (in the northern hemisphere) is a drop from the increase in daylight hours in April. There's an increase in both months, but less of an increase in May than in April.

From the BLS:

Prices for final demand less foods, energy, and trade services rose 0.4 percent in December following a 0.8-percent increase in November. In 2021, the index for final demand less foods, energy, and trade services moved up 6.9 percent, following a 1.3-percent advance in 2020.

I'll link to the source right away.

[The Mouth]

8. Thanks

I was hoping that the person making the claim would post a link to the actual data; too busy today to chase down that kind of thing.
It's not how any individual month looks, it's how bad people are being hurt over the course of years.

Easy for people NOT on a fixed income to be blasé and all "Well, it's a recovery" and such.

If we lose the white house in 2024 I'm going to blame every person who discounted how terribly the inflation of the last was hurting the people I know. Amazing that some can pretend to be liberals and not give a crap about the cruelest tax of all. I regard it as the single most important issue, period. Getting killed we are, anyone who doesn't see that and care at least as much about it as they do about any other issue is essentially saying 'Fuck you' to me and most of the people I know.

[mahatmakanejeeves]

9. I am reminded of a thread we had in LBN this morning.

Thu Jan 13, 2022: Abortion grows as priority issue for Democrats: AP-NORC poll

Yeah; it's made it all the way up to fifth place. What's ahead of it?

Some other issues like the economy, COVID-19, health care and gun control ranked as higher priorities for Democrats in the poll, which allowed respondents to name up to five top issues. But the exponential rise in the percentage citing reproductive rights as a key concern suggests the issue is resonating with Democrats as the Supreme Court considers cases that could lead to dramatic restrictions on abortion access.

It gets people's attention when they go to the store and see that things cost more this week than they did last week.

Well, those are consumer prices, not producer prices, but they're still prices.

Thanks for writing.

Happy New Year.

[Slammer]

12. +1 n/t

[h2ebits]

4. Let's talk about corporate profits now

Putting things a little in perspective for me. Despite this 2021 (total year) spike in wholesale prices of 10%, it appears corporations managed to have huge profit increases. CLEARLY the big corporations have hiked retail prices for their own greed and bottom line.

Hmmm. . . .no wonder people are job hopping for pay increases, unionizing, and demanding better pay.

[ProudMNDemocrat]

5. And Biden is to blame for this?

No!

Inflation, Economics 101 teaches, is spurred by supply and demand. When DEMAND for goods and services is higher, what SUPPLY these is, cause prices to go up.

COVID resulted in less supply of goods and services. Less people were going out. Less were driving on the roads. Manufacturers and supply chains cut back. 2021 saw increases in spending, travel, eating out, etc. Demand increased as supplies struggled to keep up here and abroad.

To lay blame at Biden's feet is futile. Nor does a President gave control what private business charges a customer for goods and services. Calling out price gouging for outrageous profits is one thing. Most every President in my Lifetime has done that.

[mahatmakanejeeves]

10. In the words of Harry Truman,

Source: https://www.tunnelhill.org/the-buck-stops-here/

[mahatmakanejeeves]

7. From the source, the U.S. Bureau of Labor Statistics:

PPI for final demand advances 0.2% in December; services rise 0.5%, goods decrease 0.4%

Economic News Release USDL 22-0020

Producer Price Index News Release summary
Transmission of material in this release is embargoed until 8:30 a.m. (ET), Thursday, January 13, 2022

Technical information: [phone] * [e-mail] * www.bls.gov/ppi
Media contact: [phone] * [e-mail]


PRODUCER PRICE INDEXES - DECEMBER 2021


The Producer Price Index for final demand increased 0.2 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This rise followed advances of 1.0 percent in November and 0.6 percent in October. (See table A.) On an unadjusted basis, final demand prices moved up 9.7 percent in 2021, the largest calendar-year increase since data were first calculated in 2010.

In December, the advance in the final demand index can be traced to a 0.5-percent increase in prices for final demand services. Conversely, the index for final demand goods decreased 0.4 percent.

Prices for final demand less foods, energy, and trade services rose 0.4 percent in December following a 0.8-percent increase in November. In 2021, the index for final demand less foods, energy, and trade services moved up 6.9 percent, following a 1.3-percent advance in 2020.

Final Demand

Final demand services: Prices for final demand services rose 0.5 percent in December following a 0.9-percent increase in November. Over half of the broad-based advance in December is attributable to margins for final demand trade services, which moved up 0.8 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand services less trade, transportation, and warehousing and for final demand transportation and warehousing services rose 0.2 percent and 1.7 percent, respectively.

Product detail: Over a quarter of the December increase in the index for final demand services can be attributed to margins for fuels and lubricants retailing, which rose 13.0 percent. The indexes for airline passenger services, food retailing, machinery and vehicle wholesaling, machinery and equipment parts and supplies wholesaling, and traveler accommodation services also moved higher. In contrast, margins for automobile and automobile parts retailing decreased 2.7 percent. The indexes for deposit services (partial) and for health, beauty, and optical goods retailing also declined. (See table 2.)

{snip}

This information will be available on the PPI website at www.bls.gov/ppi or by contacting the PPI Section of Index Analysis and Public Information at [e-mail] or [phone].

*****
Coronavirus (COVID-19) Impact on December 2021 Producer Price Index Data

For each month from March 2020 to December 2021, BLS has published a summary of the impact of the pandemic on the Producer Price Index news release and data. The impact summary for December is available at www.bls.gov/covid19/producer-price-indexes-covid19-impacts-december-2021.htm. Beginning with publication of January 2022 data in February 2022, this month-specific impact summary will be discontinued. However, information related to the impact of the pandemic will continue to be available at www.bls.gov/covid19/effects-of-covid-19-pandemic-on-producer-price-index.htm.

{snip}

* * * * *

[center]Facilities for Sensory Impaired[/center]

Information from these releases will be made available to sensory impaired individuals upon request. Voice phone: [phone], Federal Relay Services: 1-800-877-8339.

[Yandex]

11. This sux! n/t