Wholesale Prices Report Makes Clear The Lid Is Coming Off Inflation

Wholesale prices are increasing alarmingly. The Producer Price Index (PPI) rose 0.9% in just the one month from June to July, over four times the 0.2% rise expected. If sustained over 12 months 0.9% would be an annualized rate of almost 11%. As it is, it pushed the wholesale prices up to 3.3% higher than they were at this time last year, well above The Federal Reserve target rate of 2%. The 3.3% is almost 38% higher than the 2.4% expected.

The exploding increase in wholesale prices ensure that similar price increases to consumers are imminent.

Some of the specific one month increases are staggering. Raw agricultural products leapt 12.8% from June with fresh and dry vegetables seeing a monumental 38.9% monthly price increase.

The average price of a pound of ground beef has increased from $5.54 when Trump took office to $6.25 now, an increase of almost 13% in just six months. There is no cow equivalent of bird flu to blame that on.

Through all this Trump is gas lighting America, telling us that under him grocery prices have declined.

This news comes on the heels of news two weeks ago that the jobs market is much weaker than previously reported and expected. Trump “handled” that problem by firing the person responsible for reporting the numbers.