The older data reveals that inflation is still here and consumers are still spending.
About a quarter of the 3.3% price increase recorded by this month’s producer price index was driven by a spike in wholesale prices for veggies.
We learned Tuesday that consumer prices are relatively stable across many goods and services, despite higher tariffs. On Thursday, we learned producer prices are spiking.
Where prices did climb — warehousing and transportation — points to an inventory build. Upcoming CPI will make the inflation picture clearer.
The Labor Department reported that the price of imported goods rose 0.3% in February compared to 0.8% the month before.
It’s usually called a measure of wholesale prices, but it can also be a leading indicator that shows where consumer prices are headed.
These measures of inflation track the prices consumers pay and the prices producers receive for their wares. But they don’t always line up.
Services prices helped push up the producer price index in July. But that increase likely isn’t a lasting one.
Economists say the more measures, the better their predictions — even if they provide slightly different pictures of the economy.
Wholesale prices rose 0.7% in January, showing that inflation is sticking around.
