The United States Department of Labor announced more troubling news for the Biden administration as wholesale prices of consumer goods rose 9.6% year-over-year from November 2020-November 2021, setting a record since the department started tracking these figures in 2010.
The business new outlet also noted that economists had predicted an annual gain of 9.2%.
The news comes as several economists have called on the Federal Reserve to hike interest rates to help combat inflation across the economy. On Monday, The Daily Wire reported that Morgan Stanley CEO James Gorman advised the Federal Reserve to hike interest rates:
The Bureau of Labor Statistics announced last week that inflation rose at a 6.8% pace last month — the largest year-over-year increase since June 1982. Households are grappling with significantly higher price levels in staples such as gasoline, food, vehicles, electricity, and apparel.
As the Federal Reserve begins deliberations on potentially tapering monetary stimulus, Gorman believes that a rate hike would be prudent.
“We are heading toward a rising interest rate environment,” Gorman said during an interview with CNBC. “I felt the Federal Reserve would be better off storing away some of the rate increases, so when the inevitable downturn comes, you’ve got some ammunition to fight with.”
In order to establish a normal interest rate regime, Gorman said that the central bank will need to carry out 10 rate hikes. “If I were the Fed, I would start moving earlier rather than later. Store away some ammunition and accept the reality,” he continued.
As noted by Josh Jordan, “The PPI ‘core’ number also beat expectations, up 7.7% year over year compared to a 7.2% expectation. Those costs will be passed to consumers.”
The November PPI (producer price index) rose 9.6% year/year – the highest level of inflation on record and higher than the expectations.
The PPI “core” number also beat expectations, up 7.7% year over year compared to a 7.2% expectation.
Those costs will be passed to consumers.
— Josh Jordan (@NumbersMuncher) December 14, 2021
Beyond harming the American people, the inflationary news will surely continue to harm Biden’s popularity.
Poll after poll has shown that the American people do not trust President Joe Biden to handle the economy. On Sunday, an ABC News/Ispsos poll revealed that the majority of Americans do not approve of how Biden’s combatting inflation:
More than two-thirds of Americans (69%) disapprove of how Biden is handling inflation (only 28% approve) while more than half (57%) disapprove of his handling of the economic recovery. Partisan splits for inflation show expected negativity in Republican views (94% disapproving), but the survey also reveals weaknesses from Biden’s own party with only a slim majority of Democrats (54%) approving.
Last week, a Wall Street Journal poll also found that 61% of Americans believe that the economy is heading in the wrong direction and that many Americans miss President Donald Trump’s policies:
The poll was sponsored by The Wall Street Journal, ALG Research, and the firm Fabarazio Lee, and conducted between November 16 and November 22.
Voters were asked, “Regardless of how you may feel personally about each man, would you rather continue pursuing Joe Biden’s policies and proposals or return to Donald Trump’s policies and proposals?” According to the survey, 46% said they somewhat or strongly wanted to continue Biden’s policies while 48% said that they somewhat or strongly wanted to return to Trump’s policies.
When asked, “Specifically, would you say that the economy is going in the right direction or headed in the wrong direction?” a whopping 61% of voters said it was going in the “wrong direction.”