{"id":19210,"date":"2025-08-27T14:10:57","date_gmt":"2025-08-27T14:10:57","guid":{"rendered":"https:\/\/lonecandle.com\/?p=19210"},"modified":"2025-08-27T14:10:57","modified_gmt":"2025-08-27T14:10:57","slug":"soaring-wholesale-prices-mean-higher-inflation-is-coming-are-tariffs-to-blame","status":"publish","type":"post","link":"https:\/\/lonecandle.com\/?p=19210","title":{"rendered":"Soaring Wholesale Prices Mean Higher Inflation Is Coming. Are Tariffs To Blame?"},"content":{"rendered":"\n

“Overall, the producer price index (PPI), which measures<\/a> the prices paid to domestic<\/em> producers for their output, climbed by 0.9 percent<\/a> last month (well above expectations<\/a>) and 3.3 percent on an annualized basis. A few categories saw particularly large increases<\/a>. Wholesale prices for food, for example, rose by 1.4 percent, while wholesale prices for consumer electronics increased by over 3 percent.<\/p>\n\n\n\n

…<\/p>\n\n\n\n

Lots of domestic products rely on imports of raw materials and intermediate goods. You can’t make<\/a> a chocolate bar without cocoa beans, for example, and over half of all imports<\/a> are things that domestic businesses use as inputs.<\/p>\n\n\n\n

Economists have warned that tariffs would increase the cost of importing component parts and force domestic firms to increase the prices they charge for their outputs. That seems to be exactly what today’s PPI report shows.<\/p>\n\n\n\n

Second, the PPI is often seen as an advance warning system for higher inflation at the consumer level\u2014because higher prices at the wholesale level will likely be passed along at the retail level.”<\/p>\n\n\n\n

https:\/\/reason.com\/2025\/08\/14\/soaring-wholesale-prices-mean-higher-inflation-is-coming-are-tariffs-to-blame<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

“Overall, the producer price index (PPI), which measures the prices paid to domestic producers for their output, climbed by 0.9 percent last month (well above expectations) and 3.3 percent on an annualized basis. A few categories saw particularly large increases. Wholesale prices for food, for example, rose by 1.4 percent, while wholesale prices for consumer electronics increased by over 3 percent.<\/p>\n

…<\/p>\n

Lots of domestic products rely on imports of raw materials and intermediate goods. You can’t make a chocolate bar without cocoa beans, for example, and over half of all imports are things that domestic businesses use as inputs.<\/p>\n

Economists have warned that tariffs would increase the cost of importing component parts and force domestic firms to increase the prices they charge for their outputs. That seems to be exactly what today’s PPI report shows.<\/p>\n

Second, the PPI is often seen as an advance warning system for higher inflation at the consumer level\u2014because higher prices at the wholesale level will likely be passed along at the retail level.”<\/p>\n

https:\/\/reason.com\/2025\/08\/14\/soaring-wholesale-prices-mean-higher-inflation-is-coming-are-tariffs-to-blame\/<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[13],"tags":[217,165,290,1316,1407,208,141],"class_list":["post-19210","post","type-post","status-publish","format-standard","hentry","category-article-share","tag-economics","tag-economy","tag-imports","tag-inflation","tag-prices","tag-tariffs","tag-taxes"],"_links":{"self":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/19210","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19210"}],"version-history":[{"count":1,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/19210\/revisions"}],"predecessor-version":[{"id":19211,"href":"https:\/\/lonecandle.com\/index.php?rest_route=\/wp\/v2\/posts\/19210\/revisions\/19211"}],"wp:attachment":[{"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lonecandle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}