Producer price index on the rise as inflation runs rampant
CAPE GIRARDEAU, Mo (KBSI) – The Bureau of Labor Statistics reported last month that wholesale prices increased more than expected in September, nearly half a percent.
Southeast Missouri State economics professor, Dr. David Yaskewich says that higher interest rates — adding to an already inflated economy — can leave many Americans nervous.
“So, the longer we see higher interest rates and inflation remain high the more nervous investors will get, the more nervous businesses [get], but we would think at some point higher interest rates would slow down business spending and they could have a negative impact on inflation,” said Yaskewich.
With interest rates continuing its ascent via the Federal Reserve, citizens might want to find ways to cut costs.
Of course, a 16 percent increase for dry vegetables, for instance, makes that a tough pill to swallow!
Yaskewich says looking at your bank account in depth could be a nice place to start, as wholesale inflation increased to an eye-popping 8.5 percent for the month of September.
“A lot of banks, if you use the debit card would track where you’re spending money and the types of categories you’re spending money on, so the concern is people might be spending too much money eating out at restaurants or on entertainment expenditures or on clothing. That could be one good way of tracking your expenses and maybe doing some reflection.” said Yaskewich.
The producer price index’s skyrocketing increase could mean that people investing may be heavily watching their portfolio(s).
“So even though it is not the consumer price index, households and consumers might care if it impacts the profitability of firms and maybe the prices and the values of the stocks that they own,” said Yaskewich.