MADISON – The federal Bureau of Labor Statistics (BLS) announced on Tuesday that the Producer Price Index (PPI), which measures the prices paid directly to producers for goods and services, was up 10.8 percent year-over-year in May. This is the sixth straight month that the PPI has grown by 10 percent or more on an annual basis.
The PPI is an important indicator of what consumer-side inflation will be in the future because it measures what businesses are currently paying for goods and services that consumers will ultimately purchase.
Following the release from BLS, Wisconsin Manufacturers & Commerce (WMC) President & CEO Kurt R. Bauer released the below statement:
“Prices continue to go up at historic rates, and the new PPI numbers show us that exorbitantly high costs are here to stay for the foreseeable future. When businesses are seeing double digit increases on goods and services, it means the consumer will ultimately pay the price – literally.
“Unfortunately, political leaders including President Biden and Gov. Evers have flooded the economy with borrowed money and pursued polices that have driven up costs for gasoline, electricity and countless other everyday items.
“To get inflation under control, we need policymakers to unleash the potential of inexpensive American energy and rein in government spending. Until this happens, we can all expect to be forking over more and more for less and less.”