High Energy Costs Push Up Producer Prices

The article begins by stating how producer prices have risen .7 percent since March, as a result of high energy costs. The article then goes on by pointing out how consumers may see a price increase as well. Hauser finishes the article by mentioning the Federal Reserve and how its tactics to stimulate growth will not change because “there is sufficient room to allow prices to run." The most important sentence in the article comes at the end and states: “The economy can add a zillion jobs, but if wage growth is not coincident, aggregate purchasing power is likely to be constrained." Furthermore, it is safe to assume that as long producer prices continue to rise, as a result of high energy costs, then we are likely to see a rise in consumer prices over time.