The October read on producer inflation showed some of the highest numbers in months on key indicators of price increases that have come as a result of the Biden administration and congressional Democrats' tax-and-spend agenda.
Month-over-month, headline PPI inflation advanced 0.2 percent in October — the same as in September — and prices upstream from consumers increased a full eight percent in the 12 months ending in October.
The core PPI number that excludes more volatile foods, energy, and trade services also saw prices increase 0.2 percent for an annual advance of 5.4 percent.
PPI for final demand advances 0.2% in October; goods rise 0.6%, services decrease 0.1% #BLSData https://t.co/dyytPa492i
— BLS-Labor Statistics (@BLS_gov) November 15, 2022
Some of the more alarming data points in the latest Producer Price Index report include the index for final demand goods, which advanced 0.6 percent in October — the largest advance since June when that metric increased 2.2 percent.
The Biden administration's war on safe, cheap, and reliable energy has also taken a toll on inflation, as seen again in October's PPI report in which most of the month-over-month increases "can be traced to a 2.7-percent jump in prices for final demand energy," the Bureau of Labor Statistics noted in its latest report.
What's more, 60 percent of October's price increases for final demand goods are attributable to the index for gasoline which jumped 5.7 percent. At the same time, prices also increased for diesel fuel, fresh and dry vegetables, residential electric power, chicken eggs, and oil and gas field machinery.
The only potential bright spot in October's PPI report is the 0.1 percent decrease seen in final demand services, its first downward movement since November of 2020. However, final demand services excluding trade, transportation, and warehousing increased by 0.2 percent.
Meanwhile, the indexes for hospital inpatient care increased 0.8 percent while services related to securities brokerage, apparel wholesaling, and airline passenger services increased, too.
President Biden already tried to take a victory lap on the producer inflation report, claiming in a statement that his "economic plan is showing results, and we face global economic challenges from a position of strength," while completely ignoring the fact that the inflationary mess the U.S. is struggling to get out of was of his own creation.
Job Creators Network President and CEO Alfredo Ortiz reacted to Tuesday's PPI report noting "inflation is still hitting small businesses just as hard as consumers," which in turn is "reducing the already slim profit margins of small businesses."
The Federal Reserve has been fighting to bring inflation down with repeated .75 percent interest rate hikes, bringing their target rate to the highest level since 2008. The big question looming now is how hard the economy will eventually dive once the full impact of their aggressive interest rate is felt.