Tuesday, November 18, 2014

Producer Prices Rose in October

The Producer Price Index for final demand rose 0.2% in October, seasonally adjusted, following a 0.1% decline in September and no change in August. On an unadjusted basis, the index for final demand advanced 1.5% for the 12 months ended in October, the smallest 12-month increase since a 1.2% rise in February 2014.

Final demand services rose 0.5%, the largest increase since July 2013. The October advance can be traced to a 1.5% increase in margins for final demand trade services.

Prices for final demand goods declined 0.4%, the fourth consecutive decrease. The decline was led by a 3.0% decline in energy, partially offset by a 1.0% increase in foods. Over 80% of the October decline in prices for final demand goods can be attributed to the index for gasoline, which dropped 5.8%.

Prices for finished goods moved down 0.3% in October, the third consecutive decrease, led by a 2.7% drop in finished consumer energy goods. The decline was partially offset by a 1.4% increase in finished consumer foods.

Processed goods for intermediate demand moved down 0.9% in October, the largest decrease since March 2013, led by a 3.2% decline in processed energy goods. Unprocessed goods for intermediate demand decreased 2.4%, led by a 5.5% decrease in energy materials, partially offset by a 1.0% increase in foodstuffs and feedstuffs.

Read the BLS report.

No comments:

Post a Comment

Please read our comment policy before making a comment.