Producer Price Index (PPI) 1020

On an unadjusted basis, from September 2008 to September 2009, prices for finished goods fell 4.8 percent, the tenth consecutive month of year-over-year declines.

The Producer Price Index for Finished Goods declined 0.6 percent in September, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.

This decrease followed a 1.7-percent rise in August and a 0.9-percent decline in July.

In September, at the earlier stages of processing, prices received by manufacturers of intermediate goods moved up 0.2 percent, and the crude goods index fell 2.1 percent.

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Finished goods

In September, over ninety percent of the finished goods decrease was the result of lower energy prices, which moved down 2.4 percent. The indexes for finished goods less foods and energy and for finished consumer foods also contributed to the decline in finished goods prices, both edging down 0.1 percent.

Finished energy: The index for finished energy goods fell 2.4 percent in September compared with an 8.0-percent surge a month earlier. Almost eighty percent of the decrease can be attributed to gasoline prices, which moved down 5.4 percent. Falling prices for home heating oil and residential natural gas also contributed to the decline in the finished energy goods index.

Finished core: Prices for finished goods less foods and energy edged down 0.1 percent in September following a 0.2-percent increase in August. Leading the decline, the index for light motor trucks moved down 1.4 percent. Lower prices for pet food also impacted the finished core index.

Finished foods:

Prices for finished consumer foods inched down 0.1 percent in September after rising
0.4 percent in August. The index for eggs for fresh use, which declined 9.8 percent, led the decrease in finished consumer food prices.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components moved up 0.2 percent in September, its second consecutive monthly increase. This advance can be attributed to prices for intermediate materials less foods and energy, which rose 0.9 percent. By contrast, the index for intermediate energy goods fell 2.1 percent, and prices for intermediate foods and feeds declined 0.5 percent. On a 12-month basis, the intermediate goods index fell 11.7 percent in September. This was the second consecutive month of slowing year-over-year declines after a record 15.1-percent drop for the 12-months ended July 2009.

Intermediate core: Prices for intermediate materials less foods and energy climbed 0.9 percent in September, their fourth consecutive monthly increase. Accounting for about a quarter of the September advance, the index for primary basic organic chemicals rose 8.1 percent. Higher prices for hot rolled steel sheet and strip and for primary nonferrous metals also were factors in the intermediate core increase.

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Producer Price Index (PPI, Graph)

The Producer Price Index for Finished Goods advanced 1.7 percent in August, seasonally
adjusted. This increase followed a 0.9-percent decline in July and a 1.8-percent advance in June.

Prices for finished goods less foods and energy rose 0.2 percent in August after edging down 0.1 percent a month earlier.

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The Producer Price Index for Finished Goods advanced 1.7 percent in August, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This increase followed a 0.9-percent decline in July and a 1.8-percent advance in June. In August, at the earlier stages of processing, prices received by manufacturers of intermediate goods rose 1.8 percent and the crude goods index moved up 3.8 percent. On an unadjusted basis, prices for finished goods fell 4.3 percent from August 2008 to August 2009, following a record 6.8 percent 12-month decline in July.

Finished goods

In August, over ninety percent of the finished goods increase was the result of higher energy prices, which moved up 8.0 percent. The indexes for finished goods less foods and energy and for finished consumer foods also contributed to the advance in finished goods prices, rising 0.2 percent and 0.4 percent, respectively.

Finished energy: The index for finished energy goods climbed 8.0 percent in August, the largest monthly increase since a 10.2-percent rise in November 2007. About eighty-five percent of the August advance can be attributed to higher gasoline prices, which surged 23.0 percent. Rising prices for home heating oil and liquefied petroleum gas also contributed to the increase in the finished energy goods index. (See table 2.)

Finished core: Prices for finished goods less foods and energy rose 0.2 percent in August after edging down 0.1 percent a month earlier. Accounting for over half of this increase, the light motor trucks index moved up 0.8 percent. Higher prices for passenger cars also were a major factor in the advance in the finished core index.

Finished foods: Prices for finished consumer foods moved up 0.4 percent in August following a 1.5-percent decline in July. Almost half of this increase can be attributed to higher prices for fresh fruits and melons, which rose 5.9 percent.

Intermediate goods

The Producer Price Index for Intermediate Materials, Supplies, and Components advanced 1.8 percent after falling 0.2 percent in July. Accounting for about eighty percent of the August increase, prices for intermediate energy goods rose 7.1 percent. Prices for intermediate materials less foods and energy gained 0.6 percent and the index for intermediate foods and feeds moved up 0.3 percent. For the 12 months ending in August, the decline in intermediate goods prices slowed to 12.3 percent from a record decrease of 15.1 percent from July 2008 to July 2009. (See table B.)

Intermediate energy: The index for intermediate energy goods increased 7.1 percent after decreasing 1.4 percent in July. A major contributor to the August increase was diesel fuel prices, which rose 15.9 percent. Higher prices for gasoline and lubricating oil base stocks also had a significant impact on the intermediate energy goods index. (See table 2.)

Intermediate core: Prices for intermediate materials less foods and energy climbed 0.6 percent, the third consecutive monthly increase. Accounting for over half of the gain in August, the steel mill products index increased 6.8 percent. Rising prices for primary basic organic chemicals also had a considerable effect on the intermediate core index.

Intermediate foods: The index for intermediate foods and feeds advanced 0.3 percent after declining 2.0 percent in July. A 6.1-percent increase in the index for corn, cottonseed, and soybean cake and meal accounted for nearly all of the increase in intermediate foods and feeds prices.

Source Bureau of Labor Statistics of the U.S. Department of Labor

Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.

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Eggs UP, Energy UP, Food UP, PPI UP, Claims UP

The price of fresh eggs jumped 44 percent, the most since records began in 1992.

Energy goods increased 0.7 percent.

The price of food jumped 1.5 percent.

Producer prices (PPI) rose .3 percent.

Initial jobless claims rose by 32,000 to 637,000 in the week ended May 9, from a revised 605,000 the prior week.

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The Producer Price Index for Finished Goods increased 0.3 percent in April, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This rise followed a 1.2-percent decline in March and a 0.1-percent increase in February. At the earlier stages of processing, prices received by producers of intermediate goods moved down 0.5 percent following a 1.5-percent decrease a month earlier, and the crude goods index advanced 3.0 percent after declining 0.3 percent in March.

In the week ending May 9, the advance figure for seasonally adjusted initial claims was 637,000, an increase of 32,000 from the previous week's revised figure of 605,000. The 4-week moving average was 630,500, an increase of 6,000 from the previous week's revised average of 624,500.

The advance seasonally adjusted insured unemployment rate was 4.9 percent for the week ending May 2, an increase of 0.1 percentage point from the prior week's unrevised rate of 4.8 percent.

The advance number for seasonally adjusted insured unemployment during the week ending May 2 was 6,560,000, an increase of 202,000 from the preceding week's revised level of 6,358,000. The 4-week moving average was 6,337,250, an increase of 128,750 from the preceding week's revised average of 6,208,500.

Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.

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