Keeping you up to date on the latest data releases.
- Producer Price Index
There was scant evidence of pricing pressure coming from October’s Producer Price Index (PPI) report. The PPI for finished goods fell at an annualized rate of 3.7 percent in October, partially reversing a 9.8 percent spike up in September. The headline decrease was due in part to a 15.3 percent decline in the finished energy goods component during October, which had jumped up 31.3 percent in the previous month. Food prices were nearly flat in October, rising just 0.6 percent compared to increases of 7.0 percent and 13.8 percent in September and August, respectively. The 12-month growth rate in the PPI rose slipped down from 6.9 percent in September to 5.9 percent, though is still elevated relative to its 20-year trend growth rate of 2.3 percent. Excluding food and energy prices, the (“core”) PPI was flat in October, following a 2.7 percent gain in September. Over the past three months, the annualized growth rate in the core PPI is just 1.1 percent, compared to its longer-term (12 month) growth rate of 2.8 percent. Further back on the production line, pricing pressure ebbed, as core intermediate goods prices fell 6.6 percent and core crude goods—which are up 11.8 percent over the past year—plummeted 40.8 percent in October.