Producer Prices Continue To Show Inflation Is In Check And Outlook Is Stable

Thursday, December 13, 2012 21:48
edit
Producer Prices Continue To Show Inflation Is In Check And Outlook Is Stable

Tags: economic indicators | Economic Outlook | economy

The producer price index (PPI) retreated by a seasonally adjusted .8% in November. The index gauges how much manufacturers and wholesalers pay for finished goods and is a primary measure for inflation.
 
The most volatile components of the index are energy prices and food prices. Energy prices fell 4.6% with prices for gasoline dropping 10.1%. Food prices rose 1.3%.

This Website Is For Financial Professionals Only


 
Those components are taken out to see what is called core PPI. This is a more accurate measure of the real inflation picture since the most volatile components are excluded.
 
Core PPI showed that prices advanced only .1% last month. A survey of economists by Dow Jones Newswire had predicted the overall PPI to fall .5% and core prices to rise .1%.
 
Wholesale prices of passenger cars rose .5% in November. Year-over-year, the PPI rose 1.5%, well below the Fed’s inflation target of a 2% annual rate.
 
The Fed noted in the concluding statement to its meeting on December 11 and 12 that the inflationary outlook looks stable and continues to run below its target.

Comments (0)

Write comment

You must be logged in to post a comment. Please register if you do not have an account yet.

busy