by Sundance at The Conservative Treehouse
The “Producer Price Index” (PPI) is essentially the tracking of wholesale prices at three stages: Origination (commodity), Intermediate (processing), and then Final (to wholesale). Today, the Bureau of Labor and Statistics (BLS) released the May 2022 price data [Available Here] showing another 10.8% increase year-over-year in Final Demand products at the wholesale level.
The inflation within the total goods supply chain continues to accumulate at a more significant rate than the finished goods on the store shelves. This means replacement goods will continue arriving with higher prices than current. Final demand goods in May were 1.4% higher than April (16.8% annualized). And the May year-over-year prices show a 10.8% increase [See Table A]. However, there’s more trouble ahead:
More troubling than the final demand price increases (wholesale finished goods), are the price increases in the intermediate goods and unprocessed raw materials…
Continue Reading