How is he going to fix this disaster?
The Labor Department revealed that prices charged by businesses for goods and services purchased in the U.S. rose 9.6%.from last November, which is their highest annual increase in years.
The Producer Price Index on final demand goods rose 1.2% compared to October. However, compared to the same time last year, prices were up 14.9%. For services, the increase was slightly less steep, rising only 0.7% over 30 days and a 7.1% increase over the 12-months.
The PPI, published by the Bureau of Labor Statistics, includes a group of indexes representing the movements of prices for goods and services for domestic producers; the index reveals the inflation on input costs to producers.
Final demand refers to the goods and services sold to businesses and households expected to be the end-user.
The report also includes statistics on prices for intermediate demand, which refers to goods and services purchased by businesses who use them to produce a product for end-users. To give an overview of how inflation affects the supply chain, the PPI breaks down production into four stages. Each descending stage sells to the next stage. This means stage one is the furthest from the final demand stage in the supply chain.
It was revealed in the report that core producer prices had a significant increase, with a 6.9% year-over-year increase, the steepest increase recorded since August 2014.
These figures were worse than economists’ initial projections, which included a monthly increase of 0.5% and a 12-month increase of 9.2% on the headline final demand figure. Economists also predicted that core prices would increase by 0.4% month-over-month and 7.2% for the year.