Recent Updates

  • China: CPI, PPI, Shanghai Stock Exchange, Bankcard Consumption Confidence (Sep); Korea: Import and Export Price Indexes (Sep)
  • Australia: Bankruptcies by State (Q3)
  • Australia: Bankruptcies (Q3); New Zealand: CPI (Q3)
  • US: Monthly Treasury Statement (Sep), Mfg & Trade Inventories & Sales (Aug), Adv Retail Sales (Sep)
  • US: Empire State Mfg Survey (Oct)
  • Japan: NCI Economic Activity Index (Oct)
  • more updates...

Economy in Brief

U.S. PPI Rises 0.3% in August due to Food and Energy; Core Prices Remain Flat Overall
by Carol Stone  September 13, 2013

The producer price index for finished goods rose 0.3% in August (+1.4% y/y) following an unchanged performance during July, which was unrevised. Consensus expectations were looking for a 0.1% rise. Prices excluding food & energy, however, were unchanged (1.2% y/y) after a 0.1% July rise and lower than August forecasts of a 0.2% gain.

Both food and energy prices pushed up on the total. Energy was up 0.8% in the month, which, given a strong move in the year-ago month, resulted in a year-on-year increase of just 0.7%. Gasoline prices more than reversed their 0.8% July decline with a 2.6% rise this August but compared to August 2012, they were down 2.2%. Residential natural gas prices fell 1.7% m/m in August (+7.7% y/y) after July's 3.9% decline. Home heating oil prices in August decreased 5.7% m/m and also decreased 5.1% y/y. Residential electric power went up 0.2% (3.2% y/y). Food prices rose 0.6% on the month in August (+2.6% y/y) following July's unchanged performance. The August advance came largely from fresh and dried vegetables, which jumped 26.9% in the month (+47.1% y/y). Processed fruit and vegetable prices, in contrast, fell in August, by 1.0%, and were down 0.3% from August 2012.

Finished consumer goods prices excluding foods rose 0.3% (+1.3% y/y), including the energy price upturn. Finished consumer goods prices excluding food & energy were unchanged (1.7% y/y) following July's 0.1% rise. Within the components, women's apparel prices rose 2.2% y/y while men's apparel prices were up 1.4% y/y. Furniture prices were up 2.2% y/y but household appliance prices fell 0.4% y/y and home electronic equipment was down 2.3% y/y. Passenger car prices fell 0.5% m/m and were off 2.0% y/y. Capital equipment prices fell 0.1% last month (+0.6% y/y) after being unchanged in July.

Intermediate goods prices were unchanged m/m for a second consecutive month (+0.5% y/y in August) as core prices rose 0.2% (+1.3% y/y) after falling 0.3% in July. Intermediate foods and feeds fell 2.3% in August (-1.0% y/y) while intermediate energy goods prices increased 0.6% (+1.3% y/y). Crude goods prices dropped 2.7% last month (+1.5% y/y); crude foodstuffs and feedstuffs fell 4.2% (-3.2% y/y), and crude energy materials fell 2.7% m/m even as they were up 10.3% y/y. Crude goods core prices excluding food & energy slipped 0.4% m/m (-4.6% y/y).

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 (%) Aug Jul Jun Aug Y/Y 2012 2011 2010
Finished Goods 0.3 0.0 0.8 1.4 1.9 6.0 4.2
  Less Food & Energy 0.0 0.1 0.2 1.2 2.6 2.4 1.2
    Foods 0.6 0.0 0.2 2.6 2.6 6.3 3.9
    Energy 0.8 -0.2 2.9 0.7 -0.2 15.5 13.5
Intermediate Goods 0.0 0.0 0.5 0.5 0.5 9.0 6.4
  Less Food & Energy 0.2 -0.3 0.1 1.3 0.3 6.2 4.3
Crude Goods -2.7 1.2 0.0 1.5 -3.3 17.4 21.3
  Less Food & Energy -0.4 -0.3 0.1 -4.6 -5.2 18.5 32.5
close
large image