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Prices of Materials Used by U.S. Businesses Rise Most Since 1974

  • Latest producer price data show spike in processed goods costs
  • Higher steel, plastic and wood products adding to inflation

Inflation is already in full bloom for U.S. manufacturers and many service providers.

A below-the-radar data point in the Labor Department’s producer price index report on Friday showed the sharpest monthly spike in processed goods for so-called intermediate demand since 1974. These are goods and materials such as ball bearings, fuel, chemicals, steel and plastics that are used to make other final-demand products like automobiles and household goods.