More evidence that just about everything is getting more expensive, U.S. government data showed inflation climbing at rates not seen in a decade.
The Producer Price Index out Wednesday showed wholesalers in June saw prices rise a full percentage point, which was larger than expected.
And the same data showed prices surged seven-point-three percent since June last year. That’s the biggest annual increase in over 10 years.
The cause? Higher commodity and labor prices.
A surge in consumer demand is causing a crunch as the economy reopens, with a global supply chain still trying to catch up and workers demanding higher salaries.
Rather than absorbing those higher costs, businesses have been passing them onto consumers.
Data out Tuesday showed consumer prices swelled at their most in 13 years.
The Federal Reserve has maintained that price spikes in recent months will prove to be transitory as supply bottlenecks ease, and with more Americans likely to return to work when kids go back to school in the fall.
So far, markets are betting the Fed is right and were initially higher after the hotter-than-expected inflation reading.