After easing in late summer and early fall, inflation is surging again across the country, a pair of regional manufacturing surveys this week indicate.
The Philadelphia Fed’s November reading of prices received by manufacturers in the area soared toa 47-year high, data showed Thursdaay. The costs of materials used by factories surged to the second-highest level since 1979.
A similar survey from the New York Fed showed the metric of prices charged by manufacturers rose to the highest level since 2001. Prices paid for materials were at the second highest on record.
The Kansas City Fed’s reading of prices received climbed from a month ago and most manufacturers reported higher prices compared with a year ago. On a month-to-month basis, the survey’s measure of prices paid for materials dipped from October’s record higher but still almost every firm reported higher prices compared with a year ago.
Demand continues to climb, indicating that it is not just port congestion and logistics that is driving inflation. The Philadelphia Fed’s orders index surged to the highest level since 1973. The New York Fed’s measure of new orders also climbed. Orders fell in the Kansas City survey compared with October but the majority of firms reported orders were higher than a year ago.
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