In the U.S. wholesale prices were up 11.2% year over year in March—and up 1.4% month over month—in an inflation acceleration from February, the Bureau of Labor Statistics reported April 13.
March's producer prices report came a day after the BLS issued its consumer prices report for the month, which showed inflation reaching 8.5% across the economy and 10% for food at home, another 40-year high.
It gets worse, final-demand food prices were up 16.2% year over year in March, outpacing February's 13.7% climb. Month to month, wholesale food prices advanced 2.4%, accelerating from increases of 1.8% in January and 2.1% in February.
Just how much can the consumer take before they start to cut back? Well according to Bloomberg news in Europe the cost of gasoline and heating fuel because of the invasion of Ukraine consumers are ‘dropping subscriptions’ to help save money for heating fuel. If it becomes a choice between dinner and a movie at home or a warm house. I know I for one would pick a warm house.
If prices continue to rise in the U.S. and looking at these other inflation leaders within final-demand foods included shortening and cooking oils (up 8.4% in the month and 46% year over year), processed chickens (up nearly 29% year over year), fish/shellfish (19.7% year over year), dairy products (19.3%) and pasta products (16.7%). The choice of going out to dinner, or even takeout for dinner could soon become a choice many will opt out of according to Johnson.
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