Recent Updates

  • Kazakhstan: Bank Loans, Lending and Deposit Rates, Bank Loans by Type (Dec)
  • Turkey: Consumer Confidence (Jan)
  • Denmark: Gov't Finance & Debt, Retail Sales (Dec), Consumer Confidence (Jan); Finland: Building Production (Nov)
  • Malaysia: MIER Survey Press (Q4); Singapore: Inflation Forecast, CPI (Dec); Korea: Loans to Households & Enterprises (Nov); Philippines: GDP (Q4)
  • Japan: Sales of Department Stores (Dec), All Industry Activity
  • more updates...

Economy in Brief

U.S. PPI Unexpectedly Gains; Core Is Stable
by Tom Moeller  July 13, 2012

The producer price index for finished goods ticked 0.1% higher last month following a 1.0% May decline. Consensus expectations were for a 0.4% decline. Despite the gain, the PPI rose just 0.8% during the last year, the weakest since October 2009. The PPI less food & energy rose an expected 0.2% for the fourth consecutive month. During the twelve months core prices rose 2.6%, the least since last July.

A 0.5% increase (2.8% y/y) in finished food prices provided the lift to last month's PPI. Gains were not, however, broad-based amongst commodity groupings. Energy prices fell 0.9% (-5.5% y/y) reflecting an 8.3% decline (-5.2% y/y) in home heating oil prices and a 2.1% drop (-1.3% y/y) in electric power costs. Offsetting these declines was a 1.9% rise (-4.8% y/y) in gasoline prices. (Not seasonally adjusted gasoline prices fell 4.8% m/m.)

Finished consumer goods prices were unchanged (0.3% y/y). Less food & energy, consumer goods prices rose 0.3% (3.3% y/y). Within the components, men's apparel prices rose 5.2% y/y while women's clothing costs increased just 0.5% y/y. Household appliance prices rose 5.0% since June of 2011, furniture prices gained 2.9% y/y and passenger car prices increased 0.6 % y/y. Capital equipment prices gained just 0.2% last month and by 1.9% year-to-year.

Intermediate goods prices fell 0.5% (-1.2% y/y). Energy costs slipped 0.2% last month and by 5.4% y/y but food prices increased 1.0% (2.5% y/y). Core-intermediate prices fell 0.7% and slipped 0.3% y/y. Crude materials prices fell 3.6% last month and were down 11.6% year-to-year. Energy prices declined 5.1% (-20.5% y/y) while food prices were down 1.6% (-3.5% y/y). Prices less food & energy dropped 4.0% and were down 9.4% over the prior twelve months.

The PPI data are contained in Haver's USECON database with further detail in PPI and PPIR. The expectations figures are available in the AS1REPNA database.

Producer Price Index (%) Jun May Apr Jun Y/Y 2011 2010 2009
Finished Goods 0.1 -1.0 -0.2 0.8 6.0 4.2 -2.5
 Less Food & Energy 0.2 0.2 0.2 2.6 2.4 1.2 2.6
  Food 0.5 -0.6 0.2 2.8 6.3 3.9 -1.4
  Energy -0.9 -4.3 -1.4 -5.5 15.7 13.6 -17.6
Intermediate Goods -0.5 -0.8 -0.5 -1.2 9.1 6.4 -8.4
 Less Food & Energy -0.7 -0.2 0.2 -0.3 6.2 4.3 -4.2
Crude Materials -3.6 -3.2 -4.4 -11.6 17.4 21.4 -30.3
 Less Food & Energy -4.0 -1.3 -1.8 -9.4 18.5 32.5 -23.3
close
large image