A growing number of Americans are concerned about the cost of food, fuel, and a range of other household expenses, new data indicates. New information from the Labor Department of the United States indicates that their concerns are justified, with the cost of everyday household items increasing 0.5 percent in May alone.
The cost of wholesale goods in the United States is tracked using the Producer Price Index – a CPI, of sorts, for the wholesale sector. Estimates from Bloomberg predicted a 0.1 percent increase in wholesale pricing to keep in line with overall inflation. This figure excludes fuel and energy – two commodities that experience price volatility.
Economists claim that the 0.5 percent increase in wholesale pricing has been caused by slowing growth in China, one of the United States’ biggest trade partners. Many of the United States’ commodities originate in China’s manufacturing zones, giving the superpower a wide variety of low-cost goods due to the scale of its imports.
However, a downturn in demand for Chinese products in Europe due to a continued period of economic recession may be to blame for the US’s pricing problems. Fewer Chinese exports are entering the EU, leading many to believe that slower production may be restraining the cost of many commodities.
Despite the rise in wholesale prices, economists believe that the United States is not experiencing a period of large-scale inflation. The increase in wholesale costs came just one month after prices fell by 0.7 percent in April, leading many economists to brand it as a very typical correction of market pricing following the decline.
Certain parts of the American food market were hit harder than others. Fresh eggs, for example, saw a 41 percent price increase. Wholesale fuel costs, however, saw a slight price decrease, easing the stained profit margins of many ailing United States airlines.
