(The Center Square) – Producer prices soared by 11.3% in June over a year ago as consumers continue to struggle with skyrocketing prices for just about everything.
The U.S. Bureau of Labor Statistics released its Producer Price Index data Thursday, which showed a 1.1% increase last month, contributing to a 11.3% increase in the past 12 months, “the largest increase since a record 11.6% jump in March 2022.”
“This rise followed advances of 0.9 percent in May and 0.4 percent in April,” BLS said. “In June, three-fourths of the advance in the index for final demand was due to a 2.4-percent rise in prices for final demand goods. The index for final demand services increased 0.4 percent.”
Gas prices for regular and diesel gas hit all-time highs last month, leading to a trickle down effect of higher prices for all kinds of goods and services through all stages of the supply chain. Even without higher energy costs, though, prices still significantly increased.
“Prices for final demand less foods, energy, and trade services moved up 0.3 percent in June after advancing 0.4 percent in both May and April,” BLS said. “For the 12 months ended in June, the index for final demand less foods, energy, and trade services rose 6.4 percent.”
Goods become more expensive when energy costs are higher, in part because the cost to ship them has skyrocketed.
“Nearly 90 percent of the June increase can be traced to a 10.0-percent jump in prices for final demand energy,” BLS said. “The indexes for final demand goods less foods and energy and for final demand foods advanced 0.5 percent and 0.1 percent, respectively.”
The PPI data comes just one day after the BLS Consumer Price Index showed a 9.1% increase in consumer prices in the previous 12 months, the highest in more than four decades. Both of these inflation markers show that prices are continuing to rise, and experts say it could get worse later this year.
“The increase was broad-based, with the indexes for gasoline, shelter, and food being the largest contributors,” BLS said of its consumer price index. “The energy index rose 7.5 percent over the month and contributed nearly half of the all items increase, with the gasoline index rising 11.2 percent and the other major component indexes also rising. The food index rose 1.0 percent in June, as did the food at home index.”
Higher energy prices also impacted consumer costs significantly.
“The index for all items less food and energy rose 0.7 percent in June, after increasing 0.6 percent in the preceding two months,” BLS said. “While almost all major component indexes increased over the month, the largest contributors were the indexes for shelter, used cars and trucks, medical care, motor vehicle insurance, and new vehicles. The indexes for motor vehicle repair, apparel, household furnishings and operations, and recreation also increased in June. Among the few major component indexes to decline in June were lodging away from home and airline fares.”