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Producer Price Index increased 0.4% in October, ex Fd & Engy up 0.1%
The Producer Price Index for final demand increased 0.4 percent in October, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices fell 0.3 percent in September and edged up 0.1 percent in August. On an unadjusted basis, the final demand index advanced 1.1 percent for the 12 months ended in October, the smallest rise since a 1.1-percent increase in the 12 months ended October 2016.
In October, the index for final demand services rose 0.3 percent, and prices for final demand goods increased 0.7 percent.
The index for final demand less foods, energy, and trade services inched up 0.1 percent in October after no change in September. For the 12 months ended in October, prices for final demand less foods, energy, and trade services advanced 1.5 percent.
Final demand services: The index for final demand services moved up 0.3 percent in October following a 0.2-percent decline in September. Over 70 percent of the broad-based increase can be traced to a 0.8-percent advance in margins for final demand trade services. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand services less trade, transportation, and warehousing edged up 0.1 percent, and the index for final demand transportation and warehousing services increased 0.3 percent.
Product detail: A major factor in the advance in the index for final demand services were margins for apparel, jewelry, footwear, and accessories retailing, which rose 2.6 percent. The indexes for outpatient care (partial), inpatient care, food wholesaling, food and alcohol retailing, and truck transportation of freight also moved higher. In contrast, prices for securities brokerage, dealing, investment advice, and related services dropped 8.4 percent. The indexes for machinery and vehicle wholesaling and for loan services (partial) also moved lower.
Final demand goods: The index for final demand goods advanced 0.7 percent in October, the largest increase since a 1.0-percent jump in March. Seventy percent of the October rise is attributable to prices for final demand energy, which moved up 2.8 percent. The index for final demand foods advanced 1.3 percent, while prices for final demand goods less foods and energy were unchanged.
Product detail: Almost half of the October advance in the index for final demand goods can be traced to prices for gasoline, which moved up 7.3 percent. The indexes for fresh and dry vegetables, residential electric power, basic organic chemicals, corn, and diesel fuel also increased. Conversely, prices for iron and steel scrap fell 15.7 percent. The indexes for chicken eggs and passenger cars also declined. (In accordance with usual practice, most new-model-year passenger cars and light motor trucks were introduced into the PPI in October.
Posted: November 14, 2019 Thursday 08:30 AM