(Molly Bruns, Headline USA) The month of January was no exception to America’s continually rising prices, with key inflation measures showing prices rose more than expected, CNN reported.
The Producer Price Index (PPI) tracks average price changes America’s producers get paid for their services over time. The Bureau of Labor Statistics reported that the PPI rose 9.7% over the course of the last year, far higher than economists had expected.
“PPI offers a window to the price pressures that businesses are facing, and which will likely be passed on to consumers in the way of consumer price inflation in the months to come,” said PNC economist Kurt Rankin.
In just January, prices rose 1% across the board; this number was double what economists expected. The inflation gauge rose 0.9% in January—not including food, energy and trade services, which have the most volatile price swings.
Prices across the board rose, including gas, clothing and accessories, transportation and outpatient hospital care. Consumer price inflation data also exceeded economists expectations and has nearly reached a 40 year high.
BMO Economist Jennifer Lee said that it is not likely February numbers are any better.
“An early look at February in one part of the country isn’t bringing good news,” Lee said, referring to the New York state manufacturing index that was released at the same time as PPI and sharply underperformed expectations.
These numbers paint a worrisome picture for Democrats facing midterm elections, with six in 10 Americans reporting inflation hardships and several looming crises on the horizon.
Three quarters of polled Americans have said they believe the economy is in bad shape and there is nearly a 20-point lead by the Republican party in trust to handle it.
President Joe Biden’s approval rating is at an abysmal 37%, with nearly a quarter of Democrats disapproving of his administration.
