Global| Sep 16 2014U.S. Producer Prices Remain Unchanged; Core Index Up 0.1%
by:Tom Moeller
|in:Economy in Brief
Summary
The overall Final Demand Producer Price Index held steady during August (1.8% y/y) following an unrevised 0.1% uptick in July. A 0.1% rise was expected in the Action Economics Forecast Survey. Prices excluding food & energy gained [...]
The overall Final Demand Producer Price Index held steady during August (1.8% y/y) following an unrevised 0.1% uptick in July. A 0.1% rise was expected in the Action Economics Forecast Survey. Prices excluding food & energy gained 0.1% (1.8% y/y) and matched expectations.
Goods prices (34% of the total index) declined 0.3% (+1.7% y/y). A 1.5% fall (+0.2% y/y) in energy prices held back the overall index increase. Home heating oil prices fell 5.7% (-7.1% y/y) while natural gas prices were off 4.5% (+6.6% y/y). Gasoline prices were off 1.4% (-3.1% y/y) and electric power costs slipped 0.2% (+3.9% y/y). Finished food prices declined 0.5% (+3.8% y/y), the third drop in four months. Egg prices plummeted 21.5% (+2.0% y/y). Beef & veal prices edged 0.3% higher (28.6% y/y) after having surged 9.2% in July. That followed the 9.2% July upward surge. Dairy product prices gained 0.3% (12.5% y/y). Final demand prices for goods excluding food & energy remained unchanged (1.6% y/y) after a 0.2% gain during July. Passenger car prices declined 0.2% (+1.0% y/y). Private capital equipment prices held steady (1.5% y/y).
Services prices (64% of the total index) gained 0.3% (1.9% y/y) after a 0.1% uptick. Prices for transportation of passengers jumped 1.6% (4.3% y/y). Prices for transportation and warehousing of goods for final demand ticked 0.1% lower (+2.5% y/y).
Construction prices for final demand (2% of the total index) remained unchanged (3.2% y/y) following a 0.5% jump.
Intermediate demand prices of processed goods fell 0.3% (+1.3% y/y) after a 0.1% uptick.
Measured using the old formula, which is being phased out as the headline series, producer prices declined 0.4% (+2.3% y/y) after a 0.1% July uptick. Food costs retreated 0.4% (+5.0% y/y) while energy prices declined 1.4% (+0.8% y/y). Prices excluding food & energy nudged 0.1% higher (1.9% y/y) for a second straight month.
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 (%) | Aug | Jul | Jun | Aug Y/Y | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|---|---|
| Final Demand | 0.0 | 0.1 | 0.4 | 1.8 | 1.3 | 1.9 | 3.9 |
| Excluding Food & Energy | 0.1 | 0.2 | 0.2 | 1.8 | 1.5 | 1.9 | -- |
| Goods | -0.3 | 0.0 | 0.5 | 1.7 | 0.8 | 1.7 | 6.8 |
| Foods | -0.5 | 0.4 | -0.2 | 3.8 | 1.7 | 3.0 | 8.5 |
| Energy | -1.5 | -0.6 | 2.1 | 0.2 | -0.8 | 0.2 | 17.5 |
| Goods Excluding Food & Energy | 0.0 | 0.2 | 0.1 | 1.6 | 1.1 | 1.8 | 3.4 |
| Services | 0.3 | 0.1 | 0.3 | 1.9 | 1.6 | 1.9 | 2.1 |
| Construction | 0.0 | 0.5 | 0.1 | 3.2 | 1.8 | 2.9 | 2.2 |
| Intermediate Demand - Processed Goods | -0.3 | 0.1 | 0.4 | 1.3 | 0.0 | 0.5 | 8.9 |
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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