Wholesale inflation trickling down, affecting just about everything
By WVUA 23 News Reporter Asher Redd
Inflation is a major issue across the nation, and although there’s more than one cause, this one starts at the source.
Since this time last year, according to the U.S. Bureau of Labor and Statistics, the product price index rose by 11%, which means it costs manufacturers 11% more to create their products.
“All of the input that our retailers are seeing, our restaurants, our hotels, our manufacturers, all of the inputs, all of the raw materials that they’re working with are definitely increasing in prices,” said Chamber of Commerce of West Alabama Vice President of Economic Development Barkley Garret. “Eventually, they’re going to have to pass those price increases on to the end customer.”
In the past month, however, the PPI increased by half a percent, which is a sharp increase for a month’s time.
The 11% PPI increase also has an impact on consumers beyond the prices of items on the shelf because now, consumers have lost 11% of their buying power.
“We know that we’re all in this together, and so for our customers and our employees, we’re doing everything we can to hold the cost down so that people can still afford furniture,” Shane Spiller, President of Spiller Furniture and Mattress, said.
“At this point, anything is possible, unfortunately,” Garrett said.
Prices will continue to increase unless producers cut their prices, which is highly unlikely.