The price of producer goods and services spiked by 10.8 percent over the past year driven in part by higher gas prices, according to new federal data.
The U.S. Bureau of Labor Statistics on Tuesday released data that shows the Producer Price Index increased by 0.8 percent in May, up from a 0.4 percent increase in April, and preceded by 1.6 percent in March.
The Producer Price Index report shows that almost half of the increase in prices for final demand goods in May results from an 8.4 percent increase in the index for gasoline, with the national average sitting at a record high $5.02 per gallon of regular gas.
“In May, nearly two-thirds of the rise in the index for final demand was due to a 1.4-percent advance in prices for final demand goods. The index for final demand services increased 0.4 percent,” the federal Bureau of Labor Statistics said. “Over 70 percent of the increase in May can be traced to a 5.0-percent advance in prices for final demand energy.”
This data comes on the heels of the Consumer Price Index, which showed last week a 1 percent increase overall in May, part of the fastest rise in consumer prices in decades.
The food and energy index increased by 1.2 percent and 3.9 percent, respectively, in the month of May alone.
“While almost all major components increased over the month, the largest contributors were the indexes for shelter, airline fares, used cars and trucks, and new vehicles,” the Bureau of Labor Statistics said. “The indexes for medical care, household furnishings and operations, recreation, and apparel also increased in May.”
Republicans have criticized President Joe Biden for his handling of inflation and its effects on the economy.
“Joe Biden’s self-made inflation crisis is destroying the nation,” U.S. Senator Rick Scott (R-Florida) said. “He is failing hardworking Americans every single day. The worst part is he has no real plan to fix inflation.”
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