Wholesale Prices Soar in 2021

Inflation has moved beyond just consumer prices south of the border.

Wholesale prices hit their highest figure on record in December. The U.S. producer price index surged 9.7% for the year-over-year period. The print measures the prices suppliers charge businesses for goods and services.

However, for December the monthly number was below expectations at 0.2% and represents the lowest increase in 13 months. Producer prices generally represent the economy’s supply conditions.

On a monthly basis, energy prices declined 3.3% and food prices also slightly decreased. Core prices, which exclude volatile energy and food, rose 0.5% in December, and 8.3% for the 12-month period.

The producer price index follows the consumer price index, which at over 6% year over year, represents the fastest pace since December.