Wholesale Prices Jump In January As Inflation Continues To Soar

Image Credit: Marco Verch Professional Photographer / CC

The Center Square [By Casey Harper] –

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.”

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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.”

Meanwhile, a recent poll has shown that the majority of Americans think the rise in inflation last year will only get worse in 2022.

Gallup released polling data showing that 79% of surveyed Americans “predict inflation will go up,” with 50% saying it will go up “a lot.” Those are the most pessimistic numbers on inflation ever recorded by Gallup, the pollster said.

Americans are split on economic growth, though, with 40% saying it will increase and 39% saying it will decrease.

“In the past, Americans have always been more likely to say inflation will increase rather than decrease, but the current expectation is higher than usual – in fact, it is the highest Gallup has measured in its trend,” Gallup said. “The prior high was 76% in September 2005. In recent years, from 2007 through 2020, roughly six in 10 Americans have expected inflation to increase.”

The poll comes after months of economic data showing skyrocketing prices last year.

The Department of Labor’s Bureau of Labor Statistics released new inflation data for December that showed the price of goods and services rose at the fastest rate since 1982.

“The all items index rose 7.0 percent for the 12 months ending December, the largest 12-month increase since the period ending June 1982,” BLS said. “The all items less food and energy index rose 5.5 percent, the largest 12-month change since the period ending February 1991. The energy index rose 29.3 percent over the last year, and the food index increased 6.3 percent.”

At the same time, the consumer price index data released this month reported the fastest increase in decades.

“This was the sixth time in the last 9 months it has increased at least 0.5 percent,” BLS said. “Along with the indexes for shelter and for used cars and trucks, the indexes for household furnishings and operations, apparel, new vehicles, and medical care all increased in December. As in November, the indexes for motor vehicle insurance and recreation were among the few to decline over the month.”

Gallup found that Americans do believe, though, that unemployment and the stock market will improve.

“At the same time, Americans are more likely to predict the stock market will go up (46%) than go down (29%), and more also expect unemployment to go down (43%) than go up (34%),” Gallup said. “The Jan. 3-16 poll was finished before major stock indices fell the week of Jan. 17.”

About the Author: Casey Harper, The Center Square D.C. Bureau Reporter – charper@centersquare.com ~ Harper is a Senior Reporter for the Washington, D.C. Bureau. He previously worked for The Daily Caller, The Hill, and Sinclair Broadcast Group. A graduate of Hillsdale College, Casey’s work has also appeared in Fox News, Fox Business, and USA Today.