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Wholesale prices jump in January as inflation continues to soar

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Casey Harper | The Center Square

(The Center Square) – Wholesale prices jumped a full percentage point in January and 9.7 percent over last year, the Bureau of Labor Statistics said Tuesday, as inflation continues its rapid rise.

“On an unadjusted basis, final demand prices moved up 9.7 percent for the 12 months ended January 2022,” BLS said.

That increase comes after a 0.9% increase in November and a 0.4% increase in December.

“A major factor in the January increase in the index for final demand services was hospital outpatient care prices, which rose 1.6 percent,” BLS said. “The indexes for machinery and vehicle wholesaling; apparel, jewelry, footwear, and accessories retailing; traveler accommodation services; portfolio management; and truck transportation of freight also moved higher. Conversely, margins for fuels and lubricants retailing fell 9.7 percent. The indexes for transportation of passengers (partial) and for physician care also decreased.”

The Biden administration has taken heavy fire for the rising prices, especially after pushing through several trillion dollars in new federal spending last year. Federal debt spending continues to contribute to driving inflation higher as more money is printed to offset federal debts.

“Democrats say amnesty for illegal immigrants would help stop inflation,” said Rep. Lance Gooden, R-Texas. “They will fight inflation by doing everything but stop spending money.”

The rise in prices has affected a range of goods and services, though not all saw an increase.

“Within the final demand goods category in January, the index for motor vehicles and equipment rose 0.7 percent,” BLS said. “Prices for diesel fuel, gasoline, beef and veal, dairy products, and jet fuel also increased. In contrast, the index for iron and steel scrap decreased 10.7 percent. Prices for unprocessed finfish and for natural gas also moved lower.”