Bidenflation Sent Prices for Trucking, Freight Trains, Air Freight and Warehousing Soaring in April
It is getting much more expensive to transport and store goods around the United States, a signal that the economy may not yet have hit the peak of inflation.
The government on Thursday released the Producer Price Indexes (PPI) for April showing that “final demand” prices for transportation and warehousing jumped 3.7 percent compared with a month earlier. Compared with a year ago, prices in the sector are up 20.8 percent.
The skyrocketing prices for transportation also call into question the effectiveness of the policies of President Joe Biden and Secretary of Transportation Pete Buttigieg. President Biden said on Tuesday that fighting inflation was his top priority.
The PPIs contain data on prices for the full set of goods and services produced in the U.S.—including prices charged by businesses to other businesses, foreign customers, and government agencies—while the more familiar Consumer Price Index covers only prices paid by the U.S. household sector.
The data include information on “final demand” prices, which are sold the end-users of products and services, including households, businesses, government, and capital investment. They also include prices for different stages of “intermediate demand,” which track production through the supply chain.