Tuesday, July 31, 2018

Inklings of Inflation

Are we seeing signs of higher inflation? According to the Wall Street Journal, consumers are starting to see higher prices for recreational vehicles, soda, beer and other goods that now cost more to make as a result of recent tariffs on metals and parts.

U.S. steel and aluminum prices are up 33 percent and 11 percent, respectively, since the start of the year. Producer prices, a measure of what businesses are paid for goods and services, have also climbed to their highest level in years. The producer-price index rose 3.4 percent in June from a year earlier as energy and shipping costs climbed along with metal prices.

Those higher costs are starting to show up in what we pay for retail goods. Consumer prices rose 2.9 percent in June from a year earlier, the Labor Department said, the highest rate in more than six years.

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