US Labour Department reports wholesale inflation at 11.2% as consumer prices hit

Wholesale inflation in the United States shot up 11.2 percent last month from a year earlier, in another sign that inflationary pressure remains high at all levels of the economy.

The Labor Department said Wednesday that its producer price index – which tracks inflation before it hits consumers – jumped 1.4 percent in March from the prior month and 11.2 percent from a year ago.

It is the largest 12-month increase in wholesale prices since annual rates were first calculated in 2010, adding to pressure on President Joe Biden as inflation emerges as a top voter concern. 

The report showed wholesale prices for some consumer staples rising sharply, with fresh vegetables up 81.5 percent from a year ago, grains rising 40.1 percent, and processed chickens jumping 28.6 percent. 

The latest painful economic news comes just a day after the consumer price index, which measures prices at the retail level, hit a 41-year high of 8.5 percent.

The producer price index – which tracks inflation before it hits consumers – jumped 1.4 percent in March from the prior month and 11.2 percent from a year ago

It is the largest 12-month increase in wholesale prices since annual rates were first calculated in 2010, adding to pressure on President Joe Biden

Shipping containers are seen near the Seagirt Marine Terminal, Port of Baltimore, Maryland in a file photo. Retailers will face pressure to jack up prices further as wholesale prices rise

Wholesale prices minus volatile foods, energy, and trade services moved up 0.9 percent in March, the biggest largest advance since a 1 percent increase in January 2021.

So-called core wholesale inflation was 7 percent for the 12 months ended in March. 

Soaring oil prices following Russia’s invasion of Ukraine have added pressure on prices throughout the economy.

Margins for fuels and lubricants jumped 22.7 percent in March, which the Labor Department called a ‘major factor’ in the increase in final demand services.   

Inflation has become a top political threat to Biden and congressional Democrats as the crucial November midterm elections draw closer. Small business owners now say in surveys that it’s their primary economic concern, too. 

Biden has responded by blaming Russia’s invasion of Ukraine for higher prices — though inflation was running hot long before the attack in late February. 

Though Biden insists that his policies aren’t to blame for soaring prices, Republican critics have been quick to point the finger at his administration and Democrats in Congress. 

‘Prices are skyrocketing, families are struggling, and Biden is lying about who is to blame,’ said Republican National Committee Chairwoman Ronna McDaniel in a statement on Wednesday.

‘Under Biden, producer price increases have hit record highs for 12 consecutive months with no signs of slowing down. Come November, Biden, and Democrats will face the reality of their failures,’ she added.

The Labor Department said on Tuesday that the consumer price index – which measures retail inflation – increased 1.2 percent in March from the month before, for a 8.5 percent gain from a year ago. 

The consumer price index increased 8.5% in March from a…