Global| Aug 14 2012U.S. PPI Gain Driven By Core Price Increase
by:Tom Moeller
|in:Economy in Brief
Summary
The producer price index for finished goods rose 0.3% last month after a 0.1% June uptick. The gain beat expectations for a 0.2% rise. Excluding food & energy, prices gained 0.4% (2.6% y/y), the strongest rise since January. A 0.2% [...]
The producer price index for finished goods rose 0.3% last month
after a 0.1% June uptick. The gain beat expectations for a 0.2% rise.
Excluding food & energy, prices gained 0.4% (2.6% y/y), the strongest
rise since January. A 0.2% rise was expected.A
second consecutive 0.5% increase (2.2% y/y) in finished food prices
provided strength to last month's PPI. Offsetting the increase was a 0.4%
decline (-6.1% y/y) in energy prices, the shortfall due to a 3.1% drop
(-7.9% y/y) in gasoline prices. This was offset by a 1.3% gain (0.0% y/y)
in electric power costs.
Finished consumer goods prices rose 0.2% (-0.0% y/y). Excluding food & energy, consumer goods prices rose 0.6% (3.2% y/y). Within the components, men's apparel prices rose 4.5% y/y while women's clothing costs slipped 0.1% y/y. Household appliance prices rose 5.0% since July of 2011, furniture prices gained 2.9% y/y and passenger car prices increased 1.5% y/y. Capital equipment prices gained just 0.2% last month and by 1.8% year-to-year.
Intermediate goods prices fell 0.9% (-2.6% y/y). Energy costs declined 1.6% (-7.6% y/y) last month but food prices increased 1.4% (3.2% y/y). Core-intermediate prices fell 0.9% and were off 1.5% y/y. Crude materials prices gained 1.8% last month and were down 9.8% year-to-year. Energy prices inched up 0.6% (-19.1% y/y) while food prices jumped 5.2% (1.6% y/y) due to drought conditions in the Midwest. Prices less food & energy fell 1.1% and were down 11.5% 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(%) | Jul | Jun | May | Jul Y/Y | 2011 | 2010 | 2009 |
|---|---|---|---|---|---|---|---|
| Finished Goods | 0.3 | 0.1 | -1.0 | 0.5 | 6.0 | 4.2 | -2.5 |
| Less Food & Energy | 0.4 | 0.2 | 0.2 | 2.6 | 2.4 | 1.2 | 2.6 |
| Food | 0.5 | 0.5 | -0.6 | 2.2 | 6.3 | 3.9 | -1.4 |
| Energy | -0.4 | -0.9 | -4.3 | -6.1 | 15.7 | 13.6 | -17.6 |
| Intermediate Goods | -0.9 | -0.5 | -0.8 | -2.6 | 9.1 | 6.4 | -8.4 |
| Less Food & Energy | -0.9 | -0.7 | -0.2 | -1.5 | 6.2 | 4.3 | -4.2 |
| Crude Materials | 1.8 | -3.6 | -3.2 | -9.8 | 17.4 | 21.4 | -30.3 |
| Less Food & Energy | -1.1 | -4.0 | -1.3 | -11.5 | 18.5 | 32.5 | -23.3 |
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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