Producer price index increases by record 9.7% during Biden's first year in office
More than half of the PPI increase in 2021 came from the increase in the cost of trade services.
The U.S. producer price index (PPI), which measures what American producers of goods and services are paid on average over time, hit a record unadjusted increase of 9.7% over the last 12 months, according to an announcement Thursday from the Bureau of Labor Statistics.
The previous record 12-month increase occurred the previous month at 9.6%. The federal government started tracking the PPI in 2010.
More than half of the PPI increase in 2021 came from the increase in the cost of trade services. The cost of stage 1 intermediate demand goods, which includes basic chemicals, natural gas and hardware, increased by 17.5% in 2021 compared to a 2.6% rise in 2020.
The consumer price index, which measures what the average American pays for goods, increased by 7%, the Bureau of Labor Statistics reported Wednesday.
President Joe Biden addressed inflation on Wednesday with a positive outlook. "America is fortunate that we have one of the fastest growing economies—thanks in part to the American Rescue Plan—which enables us to address price increases and maintain strong, sustainable economic growth," he wrote in a press release.
Biden's approval rating, meanwhile, dropped to 33% in a Quinnipiac poll Wednesday.