Summary
Earlier today, the Labor Department reported that producer prices for finished goods rose 0.3% in January. With food and energy excluded, the Producer Price Index was up a sharp 0.8% during the month.
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Earlier today, the Labor Department reported that during January, the Producer Price Index rose 0.3%, in line with the consensus forecast. The January 0.3% increase compared with a decline of 0.3% in December, originally reported as minus 0.7%.
Today's report included significant revisions to prior data, which have been incorporated into this missive.
Excluding food and energy -- the so-called "core" rate -- the PPI up 0.8% during January. This was the largest monthly rise in six years. The consensus forecast here was for a gain of only 0.2%.
Of interest regarding the core rate is its continuing upward drift over the last several months. As of January, core PPI registered a 2.7% year-over-year gain, the largest 12-month increase in about nine years. This compared with respective year-over-year changes of 2.2%, 1.9% and 1.7% for the 12-month periods ended December, November and October. As of January 2004, core PPI stood 0.9% above its year-earlier level.
Year over year through January, producer prices (all -- finished goods) rose 4.2%, versus a 3.2% increase for the 12 months ended January 2004.
Producer Price Index
(Finished Goods)
-- Y/Y Change
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Excl. Food
Year All Items & Energy
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2004 4.3% 2.2%
2003 4.0% 1.0%
2002 1.2% -0.6%
2001 -1.8% 1.0%
2000 4.1% 1.6%
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Consumer Producer Import
Price Index Price Index Prices
Month/ ---------------------------------------
Year Y/Y L3Mos* Y/Y L3Mos* Y/Y L3Mos*
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01/05 Rel. 2/23 4.2% 2.7% 6.0% -3.4%
12/04 3.3% 3.0% 4.3% 7.2% 6.7% -0.4%
11/04 3.6% 3.9% 5.1% 9.8% 9.0% 7.5%
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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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