–YOY Rates are +6.5% Overall PPI and +2.5% Core PPI
By Joseph Plocek
WASHINGTON (MNI) – The August producer price data came in a little
better than expected, alleviating the prior month’s jump.
August PPI printed flat, core +0.1% (+0.0560% unrounded) for +6.5%
overall and +2.5% core over the year. All were less than expected.
In core, nonwood store fixtures printed a record -2.5%, commercial
furniture posted -1.1%, cars -0.4% and light trucks a mere +0.1%. In
addition, cosmetics and household flatware & glasses were flat, and dips
in some machinery and computers held down the total.
Tires at +1.4% contributed 20% of core. The Bureau of Labor
Statistics blamed hikes in rubber prices for the gain. Radio and
television equipment prices also rose. In other words, the core
moderation was widespread and these few areas supported a gain.
Note that the core PPI also moderated last summer, and remained
slow until December.
Food printed +1.1% in August on gains in eggs, meats, fruits and
vegetables. Processed fruits and vegetables were +2.0% in their biggest
gain since Feb. 1990.
Energy posted -1.0% as all areas dipped (the seasonal adjustment
moderated the decline).
Intermediate PPI at -0.5%, and Crude at +0.2% round out the report.
In intermediate prices, as energy prices fell so did lubrications and
resins and steel.
In crude foodstuffs, corn was up 9.2% and now is up 94% over the
year. This could continue to bolster meat prices ahead.
**Market News International Washington Bureau: (202)371-2121**
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