Recent Updates

  • Bulgaria: CPI, HICP (Sep)
  • Norway: External Trade (Sep); Finland: BoP, IIP (Aug)
  • Switzerland: PPI (Sep)
  • Turkey: LFS (Jul)
  • Estonia: HICP (Sep), BOP Flash Estimate (Aug); Moldova: National Bank Survey (Sep); Hungary: Construction (Aug); Slovakia: CPI, Average Fuel Prices (Sep); Kyrgyz Republic: Remittances (Aug); Slovenia: Indexes of Construction Put in Place (Aug-Prelim); Poland: CPI (Sep)
  • more updates...

Economy in Brief

U.S. Producer Prices Unexpectedly Slip; Core Index Unchanged
by Tom Moeller  October 15, 2014

The overall Final Demand Producer Price Index edged 0.1% lower (+1.6% y/y) during September following an unrevised zero change in August. A 0.1% rise was expected in the Action Economics Forecast Survey. Prices excluding food & energy remained unchanged (1.6% y/y). A 0.1% uptick was expected.

Goods prices (34% of the total index) declined 0.2% (+1.5% y/y). Energy prices fell 0.7% (-0.7% y/y). Gasoline prices were off 2.6% (-4.7% y/y) but home heating oil prices gained 2.9% (-6.8% y/y). Natural gas prices improved 1.1% (6.2% y/y) but electric power costs again slipped 0.2% (+3.5% y/y). Finished food prices declined 0.7% (+3.7% y/y), the fourth drop in five months. Beef & veal prices declined 3.7% (26.8% y/y) but dairy product prices gained 1.3% (14.2% y/y). Final demand prices for goods excluding food & energy improved 0.2% (1.8% y/y). Passenger car prices declined 0.2% (+0.7% y/y), down for the third straight month while furniture prices gained 0.2% (1.0% y/y). Private capital equipment prices improved 0.1% (1.3% y/y).

Services prices (64% of the total index) edged 0.1% lower (+1.6% y/y) after a 0.3% increase. Prices for transportation of passengers declined 1.0% (3.5% y/y). Prices for transportation and warehousing of goods for final demand gained 0.1% (2.7% y/y).

Construction prices for final demand (2% of the total index) remained unchanged (3.0% y/y) for the second straight month.

Intermediate demand prices of processed goods ticked 0.1% higher (+1.3% y/y) after a 0.3% decline.

Measured using the old formula, which is being phased out as the headline series, producer prices declined 0.2% (+2.1% y/y) after a 0.4% August shortfall. Food costs retreated 0.6% (+5.2% y/y) while energy prices declined 0.9% (-0.2% y/y). Prices excluding food & energy improved 0.2% (2.0% y/y) after two months of 0.1% gain.

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

Producer Price Index (%) Sep Aug Jul Sep Y/Y 2013 2012 2011
Final Demand -0.1 0.0 0.1 1.6 1.3 1.9 3.9
  Excluding Food & Energy 0.0 0.1 0.2 1.6 1.5 1.9 --
     Goods -0.2 -0.3 0.0 1.5 0.8 1.7 6.8
       Foods -0.7 -0.5 0.4 3.7 1.7 3.0 8.5
       Energy -0.7 -1.5 -0.6 -0.7 -0.8 0.2 17.5
     Goods Excluding Food & Energy 0.2 0.0 0.2 1.8 1.1 1.8 3.4
   Services -0.1 0.3 0.1 1.6 1.6 1.9 2.1
   Construction 0.0 0.0 0.5 3.0 1.8 2.9 2.2
Intermediate Demand - Processed Goods 0.1 -0.3 0.1 1.3 0.0 0.5 8.9
close
large image