The price of gasoline was nearly 50% more expensive in the U.S. in December 2021 than the same month the year prior. Food, on average, was 6.3% more costly – the largest annual rise in more than 13 years.

Those eye-popping stats from the federal government highlight an inescapable fact: Inflation is continuing to soar, impacting consumers and businesses, including those in the promotional products industry.

The U.S. Bureau of Labor Statistics on Wednesday, Jan. 12, said its consumer price index (CPI), which measures costs for dozens of items, including food and gas, increased 7% year-over-year in December – the biggest increase for a 12-month span since June 1982. Compared to November 2021, the gauge rose 0.5%.

Inflation has now increased at a year-over-year rate above 6% for three straight months.

Prices on a broad range of #promoproducts are poised to increase in 2022. Why? What items? And by how much? Find out with this quick video.@ASI_MBell @asicentral @Tim_Andrews_ASI pic.twitter.com/A6WZFoRJoU

— Chris Ruvo (@ChrisR_ASI) December 16, 2021

Meanwhile, the bureau’s producer price index, released Thursday, Jan. 13, increased 9.7% in December 2021 compared to December 2020 – the greatest ever calendar-year increase for the data set, which began in 2010.

The index measures the prices received by producers of goods, services and construction. There was a bright spot: The index rose only 0.2% in December 2021 compared to November 2021, a decline from the previous two month-over-month increases, which tallied 0.6% and 1%. Still, whether or not it’s a sign that wholesale inflationary pressures are starting to ease for the long term – or just a temporary respite -- remains to be seen.

Core CPI, which excludes food and energy prices, soared 5.5% in December 2021 compared to December 2020, and was up 0.6% month over month from November 2021. The jump was the largest annual increase in nearly 31 years.

Supply chain issues, shortages of products and raw materials, rising compensation costs for workers in a tight labor market, and soaring consumer demand in the economic recovery that’s occurred following COVID-19 societal lockdowns have been among the factors driving inflation.

This infographic highlights some of the recent inflationary pressures that companies in the promo products industry and beyond are facing. Click here for a PDF of the graphic.

In the promotional products industry, suppliers increased pricing on items they sold in 2021, and are doing so again in 2022, often in a range of 2% to 10%, to account for inflationary pressures.

Suppliers say the price adjustments are necessary to keep their businesses viable as they shoulder the burden of skyrocketing expenses for things like labor, raw materials, cargo containers, transportation of goods, production, utilities and more. There are other complicating factors too, such as the diminishing value of the U.S. dollar against China’s yuan.

“Whether it’s the food we buy, the gas we put in our vehicles or the heating oil we use to warm our homes, everything at the moment is more expensive,” says Dan Jellinek, executive vice president at Alpharetta, GA-headquartered Top 40 supplier The Magnet Group (asi/68507). “The promo world is not immune.”