Services Sector Prices Rise at Alarming Rate

A huge demand within the services sector has created more inflation problems in the US. According to the Institute for Supply Management, these numbers rose to the second highest recording, just below December of last year’s high.

That index, by the way, is a great measurement to see how much inflation is impacting our nation. It measures the prices that businesses have to pay for supplies and materials.

Surveys Looking Bleak

Multiple prominent surveys based on the services sector have reported the trend for inflation will continue to spike. Looking at the S&P Global US services survey, they recently reported the highest level in history for the prices that are charged by services businesses.

Diving deeper into the survey, they also noted a huge output in prices that stemmed from a quicker surplus in input prices. Overall costs peaked at the fastest pace compared to December’s record high, which happened to be the third on the record.

Outlook for Spring

Based on recent surveys, the costs that have inflated from the rising prices of energy, fueling and other various raw materials have added fuel to the fire. In addition, rising wages and prices that have been charged for these services are climbing at an alarming rate.

Consumer price inflation looks to continue this trend further out into the year. For now, it appears that it will likely head into spring and potentially further out.