Question of the Day

During the inflation of the previous year, have retail prices risen faster than wholesale prices?

Correct Answer

Tell Me More

The Consumer Price Index, which is the most widely used measure of retail inflation, rose by 6.8% from Nov. 2020 to Nov 2021. The Producer Price Index, which is a rough proxy for wholesale prices and was previously named the Wholesale Price Index, rose by 9.6% over the same period. The Biden administration and its allies in the media have been blaming corporations like Kroger for inflation, but these data show that the prices paid by retailers like Kroger are growing faster than the prices they charge consumers. Inflation is primarily caused by governments creating and circulating more money than needed by their nations' economies. This causes the purchasing power of money to shrink and prices to increase. Unless corporations have monopolies, or governments impair productivity or competition, free market forces drive corporations to keep prices to a minimum so that they don't lose customers to their competitors.

Reload Question
Reload Question
Share via Facebook
Share via Twitter
Share via Email
Embed into your website
About the Fact App
Articles by Topic