Political | Process

Wholesale prices rose at the fastest pace in recorded history last month, according to new data released by the U.S. government on Thursday.

Tweet

• The Producer Price Index for final demand increased 0.2 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today.

• This rise followed advances of 1.0 percent in November and 0.6 percent in October. On an unadjusted basis, final demand prices moved up 9.7 percent in 2021, the largest calendar-year increase since data were first calculated in 2010.

• In December, the advance in the final demand index can be traced to a 0.5-percent increase in prices for final demand services.

• Conversely, the index for final demand goods decreased 0.4 percent. Prices for final demand less foods, energy, and trade services rose 0.4 percent in December following a 0.8-percent increase in November. In 2021, the index for final demand less foods, energy, and trade services moved up 6.9 percent, following a 1.3-percent advance in 2020.

• Prices for final demand services rose 0.5 percent in December following a 0.9- percent increase in November. Over half of the broad-based advance in December is attributable to margins for final demand trade services, which moved up 0.8 percent.

• Prices for final demand services less trade, transportation, and warehousing and for final demand transportation and warehousing services rose 0.2 percent and 1.7 percent, respectively.