Recent Updates

  • US: New Residential Construction (May)
  • US: New Residential Construction (May)
  • Japan: Semiconductor Mfg Equipment Billings (May)
  • Italy: Construction Production & Construction Cost Indexes (Apr)
  • France: Imported Raw Materials Prices (May)
  • Namibia: GDP (Q1); Egypt: Foreign Trade Summary (Apr); Angola: WPI (May)
  • Greece: Turnover Index (Apr)
  • Sweden: LFS, Hours Worked (May); Iceland: Building Cost Index
  • more updates...

Economy in Brief

U.S. PPI Jumps Again
by Tom Moeller  February 16, 2011

The U.S. Producer Price Index for finished goods increased another 0.8% last month after a 0.9% December advance, initially reported as 1.1%. Earlier figures reflect benchmark revisions and the latest increase matched Consensus expectations. The PPI less food & energy rose a stronger 0.5% and greatly exceeded Consensus expectations for a 0.2% increase.

Energy prices continued to pace the strength in the PPI with a 1.8% jump (9.1% y/y) as gasoline prices increased a not seasonally adjusted 5.1% (13.2% y/y). Since the late-2008 low, gasoline prices have more-than-doubled. Home heating oil prices also were strong, posting a 3.0% (18.2% y/y) increase. Natural gas prices ticked up 0.2% (-4.0% y/y) and electricity prices slipped 0.1% (+4.1% y/y). The increase in food prices eased slightly. The 0.3% gain (3.8% y/y) was the weakest since August but still reflected strength in fresh fruit & vegetable (23.3% y/y), beef & veal (17.4% y/y) and fish prices (11.6% y/y). Offsetting this strength was bakery product (1.4% y/y), pasta (0.3% y/y) and egg prices (-7.1% y/y).

Core finished consumer goods prices were strong and posted a 0.8% (2.4% y/y) jump. Prescription drug prices were firm with a 2.5% y/y gain as were tire prices, up 9.3% y/y. Furniture prices rose 1.5% y/y but passenger car prices fell 2.0%. Capital goods prices rose a moderate 0.6% y/y.

Intermediate goods prices jumped another 1.1% as energy prices rose 1.8% (8.8% y/y). That increase was accompanied by a 0.4% gain in food prices (6.8% y/y). Core-intermediate prices remained firm and jumped 1.0% (5.0% y/y). Earlier strength in crude goods pricing continued with a 3.3% gain due to a 4.3% jump (20.6% y/y) in food prices. Energy prices rose 1.9% last month but declined 4.3% versus last January. That's after the 23.3% gain for all of 2010. Continuing to reflect strength in the industrial sector, core crude prices posted a 4.0% (25.7% y/y) jump that was paced by higher iron & steel scrap (35.6% y/y), aluminum base scrap (19.8% y/y) and copper scrap (15.6% y/y) prices.

The PPI data are contained in Haver's USECON database with further detail in PPI and PPIR.

Producer Price Index (%) Jan Dec Nov Jan Y/Y 2010 2009 2008
Finished Goods 0.8 0.9 0.7 3.7 4.2 -2.5 6.4
  Energy 1.8 2.8 1.8 9.1 13.9 -17.7 14.1
  Food 0.3 0.8 0.9 3.8 3.9 -1.4 6.8
  Less Food & Energy 0.5 0.2 0.1 1.6 1.2 2.5 3.4
Intermediate Goods 1.1 0.9 1.1 5.9 6.4 -8.4 10.3
  Less Food & Energy 1.0 0.4 0.6 5.0 4.3 -4.2 7.4
Crude Materials 3.3 6.5 1.3 10.3 21.4 -30.3 21.5
  Less Food & Energy 4.0 3.5 3.2 25.7 32.5 -23.4 14.7
close
large image