...When you look at goods that are processed by U.S. manufacturers for sale to other businesses, such as an appliance manufacturer selling to a retailer or a software maker selling to an digital game store, prices are up by more than 26 percent.
...It’s the year-over-year number that is really eye-catching. Prices for intermediate processed goods are up 26.5 percent, the largest 12-month increase since December 1974, when the index rose 28.9 percent.
This inflation is widespread. Prices for materials and components for manufacturing are up 42 percent year over year. Materials for durable goods manufacturing saw their prices jump 59.8 percent. Prices on components for durable goods rose 9.7 percent. Nondurable materials were up 36.2 percent and components 19.5 percent.
The construction industry is being hit by much higher costs. Materials prices are up 13.5 percent Component prices are up 27.1 percent.
Inflation is running even hotter in unprocessed goods, which includes crude oil, grains, iron and steel, and other raw materials. Prices rose 4.8 percent in November and are up 52.5 percent over 12-months. Over 80 percent of that is energy prices. If you subtract energy prices, unprocessed goods for intermediate demand saw prices rise 21.8 percent.
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