The Bureau of Labor Statistics reported Wednesday the prices goods and services producers receive rose in March at the fastest pace since records have been kept.
The producer price index, measuring wholesalers’ prices paid, rose 11.2% from March 2021. Final demand for goods rose 2.3% from the previous month while final demand for services rose 0.9% from February.
The biggest concern to the RV industry comes in the transportation and warehousing services pricing. Transportation and warehousing servicing prices rose 5.5% in March from the previous month. The jump is higher than any monthly report in the past year, even as transportation costs overall soared in 2021.
Although energy costs drove more than half the increase in final demand goods, final demand services comprised 40% of the 11.2% overall monthly increase, BLS stated. BLS reported the indexes for truck freight transportation and hardware, building materials and supplies retailing increased.
Relief in the supply chain does not appear on the horizon, according to the BLS data.
The pricing index for stage four intermediate demand – products purchased by industries primarily producing output sold to final demand, such as RV manufacturers – rose 11.8% in March from March 2021.
However, the pricing increased in each demand stage leading to the final product. Stage three intermediate demand – suppliers to industries such as final manufacturers – rose 19% year-over-year. Stage two intermediate demand rose 20.5% year-over-year. Stage one intermediate demand rose 16.4% year-over-year.
Higher prices in wholesale input costs and supplies have not yet peaked to final producers, BLS data found.
