In the last 3 years, the wholesale prices in the US haven’t gone up to the level as it has currently. In May, the wholesale prices of gasoline and eggs have recorded a massive increase.
The producer price index also raked up by 0.5 percent in the month of May, as reported by the Labor Department on Friday. It is interesting to note that this is the biggest one month hike since September 2012.
In May, the gasoline prices have gone up by 17 percent, which is the biggest jump in the prices since August 2009. Moreover, eggs have recorded a surge of 56.4 percent in its wholesale price. However, the core prices that include the likes of energy and food rose by only 0.1 percent in May.
The wholesale prices are down by 1.1 percent over the last 12 months. It truly reflects the lowering down of energy prices last year. The core inflation has been recorded to be 0.6 percent in a period of 12 months, which is quite a modest rate.
According to Joshua Shapiro, the chief US economist at MFR Inc. inferred that the pressure of inflation should remain calm in the coming months because of the global economy’s weakness and the strength of the US dollar in the market currently. It clearly lowers down the price of imports for the Americans.
The government is said to make a report on consumer prices next week. The consumer prices have also gotten down by 0.2 percent, which implies to the massive decline in energy costs. If we exclude food and energy, the consumer prices have gone up by 2.6 percent over a period of 12 months that ended in April.
The wholesale prices for energy climbed up by 5.9 percent with the cost of gasoline, diesel fuel, jet fuel and home heating oil. This is a record high for the wholesale price of gasoline.