Producer prices surge 11.2% in March on higher energy costs
The surging cost of energy pushed wholesale prices up a record 11.2% last month from a year earlier — another sign that inflationary pressure is widespread in the U.S. economy
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The surging cost of energy pushed wholesale prices up a record 11.2% last month from a year earlier — another sign that inflationary pressure is widespread in the U.S. economy.
The Labor Department said Wednesday that its producer price index — which measures inflation before it reaches consumers — climbed at the fastest year-over-year pace in records going back to 2010 and rose 1.4% from February. Energy prices, which soared after Russia's Feb. 24 invasion of Ukraine, were up 36.7% from March 2021.
The wholesale inflation report came out a day after the Labor Department reported that consumer prices last month jumped 8.5% from a year earlier — fastest annual clip since December 1981.
Under pressure to combat rising prices, the Federal Reserve raised ts benchmark short-term rate by a quarter-point last month and has signaled that it plans several more hikes this year.
Resurgent inflation isn't just a U.S. phenomenon. The United Kingdom's Office for National Statistics reported Wednesday that British consumer prices rose 7% in the 12 months that ended in March, the fastest pace in 30 years, pulled up by soaring energy costs.
An unexpectedly quick economic recovery from the pandemic recession of 2020 caught businesses by surprise. Their scramble to meet surging customer demand overwhelmed factories, ports and freight yards. The Ukraine war and draconian COVID-19 lockdowns in China have further disrupted supply chains over the past month.
“With a new wave of lockdowns in China and the war in Ukraine raging on ... risks to the inflation outlook remain firmly to the upside,'' economists Mahir Rasheed and Kathy Bostjancic of Oxford Economics wrote in a research report.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.