The U.S. Government’s Bureau of Labor Statistics released the Producer Price Index summary for September and it has shown a significant increase.
Most consumers are worried at the effect inflation has on their spending, but the Producer Price Index (PPI) shows another side to the story.
“That’s the amount that the companies pay from their wholesalers and suppliers for their goods and services. It’s not what you and I pay, it’s what the companies we buy stuff from, what they pay for their stuff,” aid Dr. Matt Will, economist at the University of Indianapolis on Tony Katz Today.
While it may not affect consumers directly, inflation is still a serious issue across the country and world.
The Bureau of Labor Statistics says that for the month of September, the PPI increased 0.4%. That’s the largest increase per month since 0.5% in May.
While that number is not good, it is expected. Between this time last year and today, the PPI rose 8.5% in just one year.
“The market took a big yawn. If you notice the market’s doing nothing right now, it’s not going up it’s flat,” said Dr. Will, “We knew it would be bad, it’s about where we thought it was going to be. We knew it was going to be 8.5% and while nobody likes it, it’s what we thought was going to happen.”
Dr. Will said he’s particularly worried about the increase the PPI showed for food and energy. While the individual number may be small, the percent increases add up month after month per year.