Tuesday, October 29, 2013

Producer Prices Shrank 0.1% in September

Producer prices shrank 0.1% in September, following 4 months of positive or stagnant growth. The index declined for the first time since April. The slight decline was due to a large drop in food prices, which more than offset any gains in energy and core finished good prices. Producer prices are now 0.3% above year ago levels, the weakest year-over-year growth since September 2009.

Prices for finished and intermediate core goods each improved 0.1% in September. Crude goods dropped 1.0% and 6.4% from year ago levels, in large part due to food prices and continued a declining trend. With little signs of future acceleration, near term consumer prices will remain at or near current levels, well within the Federal Reserve’s 2.0% inflation target.

Read the BLS report.

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