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Producer Prices

Main Indicator: Producer Price Index m/m

Most Recent Release

May
20th, 2008
Actual Forecast Previous Revised Form
0.2% 0.4% 1.1% N/A

For April
Provided by: Bureau of Labor Statistics

PPI m/m excl. Food & Energy: 0.4%, forecast 0.2%, pr. 0.2%
Producer Price Index y/y: 6.5%, forecast 6.6%, pr. 6.9%
PPI y/y excl. Food & Energy: 3.0%, forecast 2.9%, pr. 2.7%

Overal wholesale prices rose just 0.2% thanks to tame energy prices, food prices being flat. The core index however, excluding food and energy, rose twice as fast as expected. With last weeks tame CPI and core CPI data, the Fed can take an easy breath after dodging a fast inflation that would pressure the bank to consider raising rates. Policy members can perhaps shift their focus to address growth concerns. From the release:

The Producer Price Index for Finished Goods increased 0.2 percent in April, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This rise followed a 1.1-percent advance in March and a 0.3-percent increase in February. At the earlier stages of processing, prices received by producers of intermediate goods rose 0.9 percent following a 2.3-percent gain a month earlier, and the crude goods index advanced 3.2 percent after climbing 8.0 percent in March.

Table of Past Data

6/147/178/149/1810/1211/1412/131/153/185/20
Actual0.9%0.2%0.6%-1.4%1.1%0.1%3.2%-0.1%0.3%0.2%
Forecast0.6%0.2%0.1%-0.2%0.5%0.3%1.6%0.2%0.3%0.4%
Previous0.7%0.9%-0.2%0.6%-1.4%1.1%0.1%3.2%1.0%1.1%
Revised FromN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A

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Secondary Indicator: PPI excl. Food and Energy

Most Recent Release

December
12th, 2008
Actual Forecast Previous Revised Form
0.1% 0.1% 0.4% N/A

Table of Past Data

3/184/155/206/177/158/199/1210/1511/1812/12
Actual0.5%0.2%0.4%0.2%0.2%0.7%0.2%0.4%0.4%0.1%
Forecast0.2%0.2%0.2%0.2%0.3%0.2%0.2%0.2%0.1%0.1%
Previous0.4%0.5%0.2%0.4%0.2%0.2%0.7%0.2%0.4%0.4%
Revised FromN/AN/AN/AN/AN/AN/AN/AN/AN/AN/A

Past Releases

PPI excl. Food and Energy
November
18th, 2008
Actual Forecast Previous Revised Form
0.4% 0.1% 0.4% N/A
PPI excl. Food and Energy
October
15th, 2008
Actual Forecast Previous Revised Form
0.4% 0.2% 0.2% N/A
PPI excl. Food and Energy
September
12th, 2008
Actual Forecast Previous Revised Form
0.2% 0.2% 0.7% N/A
PPI excl. Food and Energy
August
19th, 2008
Actual Forecast Previous Revised Form
0.7% 0.2% 0.2% N/A
PPI excl. Food and Energy
July
15th, 2008
Actual Forecast Previous Revised Form
0.2% 0.3% 0.2% N/A
PPI excl. Food and Energy
June
17th, 2008
Actual Forecast Previous Revised Form
0.2% 0.2% 0.4% N/A

For May

See "Producer Price Index" 

PPI excl. Food and Energy
May
20th, 2008
Actual Forecast Previous Revised Form
0.4% 0.2% 0.2% N/A

For April

See main PPI comment above for analysis, more data and excerpt from main release.

PPI excl. Food and Energy
April
15th, 2008
Actual Forecast Previous Revised Form
0.2% 0.2% 0.5% N/A
Producer Price Index m/m
March
18th, 2008
Actual Forecast Previous Revised Form
0.3% 0.3% 1.0% N/A

For February
Official Release from Bureau of Labor Statistics

PPI m/m excl. Food and Energy: 0.5%, forecast 0.2%, pr. 0.4%
PPI y/y: 6.4%, forecast 6.8%, pr. 7.4%
PPI y/y excl. Food and Energy: 2.4%, forecast 2.1%, pr. 2.3%.

Producer prices met expectations on a monthly basis, and were lower than expected in annual terms. From a year ago, prices were up 6.4%, a decline from January. Core prices however jumped, rising 0.5% in monthly terms and 2.4% in annual terms, higher than expectations. Higher core costs are going to be difficult to pass on to consumers as the economy enters a recession and consumers are less inclined to spend. This way, producers are more likely to have to cut their profit margins as their expenses rise. Energy costs were up 0.8% compared to a rise of 1.5% in January. The price of gasoline was up 2.9% and natural gas prices gained 5.7%, the most since October 2005.

The USD/JPY and EUR/USD moved in favor of the Dollar following the release. 

PPI excl. Food and Energy
March
18th, 2008
Actual Forecast Previous Revised Form
0.5% 0.2% 0.4% N/A
Producer Price Index m/m
January
15th, 2008
Actual Forecast Previous Revised Form
-0.1% 0.2% 3.2% N/A
For December.
Official Release from Bureau of Labor Statistics

PPI m/m excl. Food and Energy: 0.2%, forecast 0.2%, pr. 0.4%
PPI y/y: 6.3%, forecast 7.1%, pr. 7.2%

PPI y/y excl. Food and Energy: 2.0%, forecast 2.0%, pr. 2.0%.
Producer Price Index m/m
December
13th, 2007
Actual Forecast Previous Revised Form
3.2% 1.6% 0.1% N/A
For November.
Official Release from Bureau of Labor Statistics

Prices paid to US producers showed the biggest gain in 34 years, pushed up by higher fuel costs. In October, PPI increased 0.1%. Core prices, which exclude food and energy, rose 0.4%, the most since February. Energy costs were up 14.1% this month, a record for a one-month gain. Inflationary pressures are not going away, and the Fed did focus on this in their most recent statement.
Producer Price Index m/m
November
14th, 2007
Actual Forecast Previous Revised Form
0.1% 0.3% 1.1% N/A
For October.

PPI Ex Food & Energy m/m: 0.0% (Oct), consensus 0.2%, pr. 0.1% (Sept)

PPI y/y: 6.1% (Oct), forecast 6.4%, pr. 4.4% (Sept)
PPI excl. Food & Energy y/y: 2.5% (Oct), forecast 2.6%, pr. 2.0% (Sept)

Prices paid to US producers rose in October at a slower pace than forecast, suggesting the economy is absorbing the effects of a jump in energy costs. On the month, PPI grew 0.1%, and core showed a flat zero change. This small change to wholesale prices reinforced trader's expectations that the Federal Reserve has room to cut rates one more time to stimulate growth. Retail Sales data released today showed a slowdown.
Producer Price Index m/m
October
12th, 2007
Actual Forecast Previous Revised Form
1.1% 0.5% -1.4% N/A
s.a.for September.

The 1.1% rise of inflation to producers follows August's 1.4% fall, and is the highest since January of this year. Energy costs increased 4.1%, and foods 1.5%, accounting for most of the rise in prices. Without those 2 components, PPI rose 0.1%, lower than last month's .2%.
Producer Price Index m/m
September
18th, 2007
Actual Forecast Previous Revised Form
-1.4% -0.2% 0.6% N/A
Prices paid to US producers fell more than forecast in August, and the -1.4% headline number was the biggest decrease since October of last year. The decline was led by a 6.6% decline in energy costs that was the biggest since April 2003. On the year PPI rose 2.2%. Intermediate goods, declined 1.2%.

The easing of prices on the producer sign is a welcome sign to the Federal Reserve as they are set to cut interest rates in order to stem a drop in economic growth, while also trying to balance the risks to inflation in the coming future. The inflation story becomes clearer tomorrow as Consumer Prices will be released for August.
Producer Price Index m/m
August
14th, 2007
Actual Forecast Previous Revised Form
0.6% 0.1% -0.2% N/A
intermediate goods rose 0.6%. Index for crude materials climbed 1.2%. For finished goods, energy goods soared 2.5%( as gasoline prices at wholesale jumped 3.2%), while finished consumer foods fell 0.1%.
Producer Price Index m/m
July
17th, 2007
Actual Forecast Previous Revised Form
0.2% 0.2% 0.9% N/A
prices of intermediate goods, encountered earlier in the production process, rose 0.5%, while crude goods rose 0.3%. Under finished goods, energy goods index dropped 1.1% after May's 4.1% increase. Notable was the drop in gasoline index of 3.9% after 10.2% jump in May. Also for June, prices in finished consumer foods index dropped 0.8%.
Producer Price Index m/m
June
14th, 2007
Actual Forecast Previous Revised Form
0.9% 0.6% 0.7% N/A
Finished Energy goods index rose 4.1% in May and pushed manufacturer prices up sharply. Food prices inched up 0.1%. Bureau of labor statistics also reported an annual increase of 4.1%

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