Department of Labor Reports Largest-Ever Price Surge, Fueling Fears of Inflation

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Department of Labor Reports Largest-Ever Price Surge, Fueling Fears of Inflation
The Bureau of Labor Statistics has attributed the sudden PPI increase to the rising costs of lumber; diesel fuel, ethanol, and natural gas; structural, architectural, pre-engineered metal products; and food such as beef and veal. File photo: Mark Van Scyoc, Shutterstock.com, licensed.

WASHINGTON, D.C. – According to The Daily Wire, the Department of Labor’s Bureau of Labor Statistics released data Tuesday that indicates the Producer Price Index (PPI) for May, which tracks fluctuations of business and domestic producer input prices, showed a 6.6 percent increase over the same period of time last year, the largest-ever jump since tracking of this sort was first implemented in late 2010. In contrast, the year-over-year PPI increases in January, February, March, and April were 1.6 percent, 2.8 percent, 4.2 percent, and 6.2 percent, respectively.

The Bureau of Labor Statistics has attributed the sudden PPI increase to the rising costs of lumber; diesel fuel, ethanol, and natural gas; structural, architectural, pre-engineered metal products; and food such as beef and veal.

The report has ignited ongoing fears that inflation the United States, following its economic recovery due to the COVID-19 pandemic, may begin to soar soon.

PNC Financial Services Group senior economist Bill Adams noted that the PPI index has taken on much more importance recently since inflation concerns have taken on greater consequence than they have in years past.

“We haven’t had an inflationary shock like this in a decade,” he said. “We know we’re in the middle of an inflationary shock but what we still don’t know is how bad it is. That’s a big part of what we’re looking to these inflation data for.”

In addition, economists from Deutsche Bank in a recent report have expressed concerns over the impact of long-term inflation, saying that it may be here to stay far longer than some people are anticipating.

“We worry that inflation will make a comeback,” they said. “Few still remember how our societies and economies were threatened by high inflation 50 years ago…it may take a year longer until 2023 but inflation will re-emerge.”

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