Summary
Earlier today, the Labor Department reported that producer prices in October rose a stunning 1.7%. Excluding, food and energy, the increase was 0.3%.
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Earlier today, the Labor Department reported that during October, the Producer Price Index rose 1.7%. Excluding food and energy -- the so-called "core" rate, for those who think there is something sensible about looking at price levels with these essential items removed -- the PPI was up 0.3% during October.
Of some interest regarding the core rate is the discernable upward creep of recent months. For the three months ended October, the PPI, excluding food and energy, rose at a 2.1% annual rate, versus respective 1.6% and 1.3% rates for the three months ended September and August.
Last Month (PPI report for September), the measure's energy component actually showed a 0.9% decline, prompting me to quip: "One wonders where the spectacular rise in energy prices of recent weeks is hiding." During October, the energy component rose a steamy 6.8%, which, at least to some extent, answered last month's question. And how every considerate, too, that this rather depressing number stayed out of sight until after the election!
Year over year through October, producer prices rose 4.4%. For the three months ended October, the PPI was up at an annual rate of 6.9%.
Consumer Producer Import
Price Index Price Index Prices
Month/ ---------------------------------------
Year Y/Y L3Mos* Y/Y L3Mos* Y/Y L3Mos*
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10/04 -Rel 11/17- 4.4% 6.9% 9.7% 14.4%
09/04 2.5% 0.6% 3.3% 0.5% 8.1% 9.4%
08/04 2.7% 1.3% 3.4% -0.5% 7.0% 6.4%
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*Trailing three-month com-
pound annual rate of change.
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NOTE: The latest PPI data will be posted to the "Data & Charts" section of the GRA website.
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