Global| Jul 15 2008U.S. PPI Surged Again
by:Tom Moeller
|in:Economy in Brief
Summary
U.S. finished producer prices jumped another 1.8% during June after the 1.4% surge during May. The increase surpassed Consensus expectations for a 1.3% rise. Finished energy prices led the increase with a 6.0% pop as gasoline prices [...]
U.S. finished producer prices jumped another 1.8% during June after the 1.4% surge during May. The increase surpassed Consensus expectations for a 1.3% rise.
Finished energy prices led the increase with a 6.0% pop as gasoline prices surged another 9.0% (39.7% y/y). Natural gas prices continued strong and surged 6.6% (17.6% y/y). Residential electric power costs rose 0.8% (4.7% y/y).
Finished consumer food prices surged by 1.5% (8.4% y/y), double the May increase. The strength continued to be led by fresh vegetables (34.0% y/y) and pasta products (37.3% y/y).
Less food & energy, the gain in finished goods prices rose the same 0.2% as they did during May. The latest figure fell slightly short of expectations for a 0.3% rise. Prices of core finished consumer goods rose the same 0.3% (3.5% y/y) as they did in May and the three-month rate of rise remained down somewhat at 4.2%. Durable consumer goods prices rose 0.3% (1.6% y/y) after the 0.4% May fall. Capital equipment prices gained 0.3% (2.4% y/y).
Intermediate goods prices surged yet again, last month by 2.1%. Excluding food & energy these prices jumped another 1.3%.
The crude materials PPI surged 3.7% due to a 5.4% (72.1% y/y) jump in energy prices. Crude food prices also doubled their May strength and surged 3.5% (20.8% y/y). Less food & energy crude prices fell 0.2%.
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| Producer Price Index (%) | June | May | Y/Y | 2007 | 2006 | 2005 |
|---|---|---|---|---|---|---|
| Finished Goods | 1.8 | 1.4 | 9.1 | 3.9 | 3.0 | 4.9 |
| Core | 0.2 | 0.2 | 3.1 | 1.9 | 1.5 | 2.4 |
| Intermediate Goods | 2.1 | 2.9 | 12.5 | 4.1 | 6.4 | 8.0 |
| Core | 1.3 | 2.0 | 8.4 | 2.8 | 6.0 | 5.5 |
| Crude Goods | 3.7 | 6.7 | 45.7 | 12.1 | 1.4 | 14.6 |
| Core | -0.2 | 5.0 | 33.2 | 15.7 | 20.8 | 4.9 |
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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