-October Core PPI Excluding Vehicles Would Have Been Flat
-Hurricane Sandy Had “Virtually No Impact” On Data Collection
By Kevin Kastner
WASHINGTON (MNI) – The Producer Price Index fell 0.2% in October,
below expectations for a 0.1% rise, as energy prices fell 0.5% after
gains in the previous two months and core prices fell 0.2%, data
released Wednesday by the Bureau of Labor Statistics showed.
Food prices were up 0.4% in October, continuing a string of five
straight increases.
Within the core, prices of passenger cars plunged 1.6%, while light
truck prices were down 1.5%. Excluding these sharp declines, which were
larger than anytime in the last two years, the core PPI would have been
flat according to the BLS.
The energy price decline was led by a 2.2% decline in gasoline
prices and a 3.3% decline in home heating oil prices, which were offset
by a 1.6% rise in home electricity prices. Excluding only energy prices,
the October PPI would have been down 0.1%, compared with the 0.1% rise
in September.
Despite the declines in October, energy prices were up 3.1%
year/year in October, while gasoline prices stand 9.6% above their
year-ago level.
Food prices rose 0.4% in October following a 0.2% rise in the
previous month. There were sharp price increases for pork, poultry, and
dairy products.
With a 0.2% unadjusted monthly decline in PPI, the 12-month rate
now stands at 2.3%, up from the 2.1% rate in September. For core PPI,
the year/year rate fell slightly to 2.1% in October from 2.3% in
September.
In the inflation pipeline, intermediate goods prices were down 0.1%
overall, but were flat excluding food and energy prices. Crude prices
rose 0.9% in October, but were down 1.4% excluding food and energy
prices.
** MNI Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
