Global| Mar 14 2013U.S. PPI Led Higher By Energy Prices; Elsewhere Inflation is Moderate
by:Tom Moeller
|in:Economy in Brief
Summary
The producer price index for finished goods gained 0.2% last month (1.8% y/y), the same as during January. The latest rise matched expectations. Also, as expected, there was a 0.2% gain (1.7% y/y) in prices excluding food & energy [...]
The producer price index for finished goods gained 0.2% last month (1.8% y/y), the same as during January. The latest rise matched expectations. Also, as expected, there was a 0.2% gain (1.7% y/y) in prices excluding food & energy during February. A 3.0% advance (1.1% y/y) in energy prices led the increase in wholesale prices last month. That rise was led by an 11.6% spurt (1.1% y/y) in home heating oil costs. Gasoline prices followed with a 9.3% increase (1.2% y/y). Offsetting these gains was a 0.5% drop (+2.6% y/y) in food prices. Fresh fruit prices were 3.0% lower (+4.1% y/y) while dairy prices fell 1.3% (+3.6% y/y).
Finished consumer goods prices increased 0.9% (2.0% y/y) and excluding food & energy prices gained 0.2% (2.4% y/y). Within the components, men's apparel prices continued to be strong and were up 3.5% y/y while women's clothing costs increased an improved 1.9% y/y. Household appliance prices gained 1.0% y/y, furniture prices rose 1.3% y/y and passenger car prices ticked up 0.2% y/y. Capital equipment prices again ticked up 0.1% last month (0.9% y/y).
Intermediate goods prices jumped 1.3% (1.1% y/y) as energy costs surged 3.6% (1.2% y/y). Food prices were unchanged (5.4% y/y). Core-intermediate prices rose 0.7% (0.7% y/y. Crude goods prices fell 0.3% (+0.8% y/y) last month as a 2.2% increase (0.2% y/y) in energy prices was offset by a 2.1% decline (+5.8% y/y) in food prices. Prices excluding food & energy fell 1.7% (-5.0% 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 (%) | Feb | Jan | Dec | Feb Y/Y | 2012 | 2011 | 2010 |
|---|---|---|---|---|---|---|---|
| Finished Goods | 0.7 | 0.2 | -0.3 | 1.8 | 1.9 | 6.0 | 4.2 |
| Less Food & Energy | 0.2 | 0.2 | 0.1 | 1.7 | 2.6 | 2.4 | 1.2 |
| Foods | -0.5 | 0.7 | -0.8 | 2.6 | 2.5 | 6.3 | 3.9 |
| Energy | 3.0 | -0.4 | -0.6 | 1.1 | -0.2 | 15.5 | 13.5 |
| Intermediate Goods | 1.3 | 0.0 | 0.1 | 1.1 | 0.5 | 9.0 | 6.4 |
| Less Food & Energy | 0.7 | 0.3 | 0.3 | 0.7 | 0.3 | 6.2 | 4.3 |
| Crude Goods | -0.3 | 0.8 | 1.4 | 0.8 | -3.2 | 17.4 | 21.3 |
| Less Food & Energy | -1.7 | -0.3 | 1.4 | -5.0 | -5.2 | 18.5 | 32.5 |
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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