WASHINGTON — Prices at the wholesale level surged by a record 9.7% in December from a year earlier, with inflation evident at all levels of the U.S. economy.
The Labor Department reported today that its producer price index, which measures inflation before it reaches consumers, did slow on a monthly basis rising just rose 0.2% in December compared to November, when prices had shot up 1%.
The 12-month increase in wholesale inflation of 9.7% was slightly higher than the old record of 9.6% set in November. The records on wholesale prices go back to 2010.
The report came a day after the government reported that consumer inflation jumped 7% in December from a year earlier, the highest such inflation rate since 1982.
The price increases at both the wholesale and retail levels have been attributed in large part to snarled supply chains at a time of surging demand. President Joe Biden’s approval ratings on the economy have taken a hit because of the surge in prices, especially for consumer necessities like food and energy.