Inflation rose 8.6 percent in September compared to the previous year, the Labor Department reported Thursday, reporting it as the greatest gain since 2010.
The Producer Price Index News Release summary reported “the final demand index rose 8.6 percent for the 12 months ended in September, the largest advance since 12-month data were first calculated in November 2010.”
The price of wholesale goods led the inflation categories. Nearly 80 percent of the past year’s inflation was attributed to the cost of goods increasing.
The increased inflation has led to higher prices for food, gas, and other items across the nation. From housing market spikes to higher auto prices, the upward trend has impacted much of the American economy.
One issue impacting inflation has been the supply chain slowdown at America’s ports. President Joe Biden addressed the concern during remarks from the White House on Wednesday.
The president addressed shipping issues at ports in Los Angeles and Long Beach, California, noting 40 percent of the nation’s shipping containers entering the United States pass through one of these two ports.
“After weeks of negotiation and working with my team and with the major union and retailers and freight movers, the Ports of Los Angeles—the Port of Los Angeles announced today that it’s going to be—begin operating 24 hours a day, 7 days a week,” Biden announced.
“This follows the Port of Long Beach’s commitment to 24/7 that it announced just weeks ago,” he added.
Biden called the effort a “first key step” to improving the nation’s supply chain.
The president’s speech also announced the expansion of shipping companies to meet the growing demands.
“Additionally, FedEx and UPS, two of our nation’s biggest freight movers, are committing today to significantly increase the amount of goods they are moving at night. FedEx and UPS are the shippers for some of our nation’s largest stores, but they also ship for tens of thousands of small businesses all across America,” he added.
The changes will influence more than the two California ports. Retailers nationwide have made notable changes to address both inflation and supply concerns.
In addition to the Biden administration’s efforts, a growing number of major retailers have taken their own actions to improve the situation. Walmart, Costco, and others have increased port hours and secured their own shipping containers and trucks to avert supply issues.
Some businesses have offset costs through other methods, included smaller packaging. A June Washington Post report offered examples of what it called “shrinkflation” companies have used to reduce the impact of inflation.