Wholesale prices spiked a near-record 11.3% in June, the Labor Department reported Thursday in another sign of out-of-control inflation that Republicans are blaming on overspending by President Biden and congressional Democrats.
The Producer Price Index, a measure of prices paid by wholesalers, jumped 1.1% last month, more than analysts expected. The increase was largely due to high gas prices.
Consumer prices also soared 9.1% in June, a 41-year high, the government reported on Wednesday.
Republican National Committee Chairwoman Ronna McDaniel said the rising prices for producers are a result of last year’s nearly $2 trillion pandemic-related stimulus law that no Republicans supported.
“Every month since Biden’s $1.9 trillion boondoggle was signed into law, prices have gone up and real wages have gone down, yet Biden and Democrats point fingers in every direction but their own,” Ms. McDaniel said. “American families and small businesses cannot afford Biden’s Great American Pay Cut, and Democrats will pay the price for rubber-stamping this reckless agenda in November.”
Mr. Biden said Wednesday that the rate of inflation for June is misleading because gas prices have come down about 40 cents per gallon since the end of last month. He called on oil companies to pass along more savings to consumers.
At the start of last year, wholesale prices were rising at a rate of less than 2%.
Alfredo Ortiz, president and CEO of the conservative Job Creators Network, said the back-to-back inflation reports are “just the latest evidence that ‘Bideninflation’ is accelerating.”
“The worst inflation in four decades is a direct result of President Biden’s spending spree and cutbacks on domestic energy production,” Mr. Ortiz said. “We are in a recession and small businesses are bearing a disproportionate share of the pain.”