Global| Mar 15 2012U.S. PPI Picks Up; Core Moderates
by:Tom Moeller
|in:Economy in Brief
Summary
The producer price index for finished goods rose 0.4% during February, the strongest increase since last September. Consensus expectations had been for a 0.5% rise, according to the Action Economics survey. Core pricing power eased. [...]
The producer price index for finished
goods rose 0.4% during February, the strongest increase since last
September. Consensus expectations had been for a 0.5% rise, according to the
Action Economics survey. Core pricing power eased. The PPI less
food & energy rose 0.2%, half the prior month's gain, and matched
expectations.
Higher energy prices were behind the strength in last month's overall PPI increase. The 1.3% (5.8% y/y) gain owed to a 4.3% rise (13.9% y/y) in gasoline prices. Home heating oil costs also were strong posting a 5.3% jump (10.6% y/y). These gains were countered by a 2.8% slide (-9.8% y/y) in residential gas prices. Another decline in food prices countered energy cost strength with a 0.1% dip (+1.6% y/y), the third decline in as many months. Egg prices fell 4.4% (-11.2% y/y) while beef & veal prices dropped 1.2% (+9.4% y/y).
Finished consumer goods prices rose 0.5% (3.7% y/y) versus January. Less food & energy, consumer goods prices rose 0.2% (3.5% y/y). Within the components, men's apparel prices rose 6.3% y/y while women's clothing costs increased 1.7% y/y. Household furniture prices gained 2.7% y/y while appliance prices rose 4.7% during the last twelve months. Passenger car prices rose a moderate 1.2% y/y. Capital equipment prices ticked up 0.1% last month and by 2.2% since last February.
Intermediate goods prices jumped 0.7% were up a firm 3.4% y/y. Energy prices rose 0.3% last month (5.5% y/y) and food prices slipped 0.1% (+4.5% y/y), down for the fourth month in the last five. Core-intermediate prices jumped 1.0% (2.5% y/y). Crude materials prices increased 0.4% last month and 1.6% during the last twelve. Energy prices gained 0.3% (0.8% y/y) while food prices rose 0.6% (3.7% y/y). Prices less food & energy fell 0.3% and were down 2.5% versus last year.
The PPI data are contained in Haver's USECON database with further detail in PPI and PPIR. The expectation figure is available in the AS1REPNA database.
| Producer Price Index (%) | Feb | Jan | Dec | Feb Y/Y | 2011 | 2010 | 2009 |
|---|---|---|---|---|---|---|---|
| Finished Goods | 0.4 | 0.1 | -0.1 | 3.4 | 6.0 | 4.2 | -2.5 |
| Less Food & Energy | 0.2 | 0.4 | 0.3 | 2.9 | 2.4 | 1.2 | 2.6 |
| Food | -0.1 | -0.3 | -0.9 | 1.6 | 6.3 | 3.9 | -1.4 |
| Energy | 1.3 | -0.5 | -0.4 | 5.8 | 15.7 | 13.6 | -17.6 |
| Intermediate Goods | 0.7 | -0.4 | -0.2 | 3.4 | 9.1 | 6.4 | -8.4 |
| Less Food & Energy | 1.0 | -0.1 | -0.5 | 2.5 | 6.2 | 4.3 | -4.2 |
| Crude Materials | 0.4 | 1.5 | -1.5 | 1.6 | 17.4 | 21.4 | -30.3 |
| Less Food & Energy | -0.3 | 0.6 | -0.1 | -2.5 | 18.7 | 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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