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| November Producer Prices (#1) - Dec. 20, 2005 |
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Summary
Earlier this morning, the Labor Department reported that producer prices during November fell 0.7%, which followed a 0.7% gain in October. For November, the so-called "core" rate, which excludes food and energy, rose 0.1%, reversing the 0.3% decline reported for October.
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* The Labor Department reported this morning that the Producer Price Index fell 0.7% during November, a flip side of October's reported 0.7% rise. The decline was led by a 4.0% drop in energy prices. Excluding food and energy, the PPI rose 0.1% during November.
* The consensus estimates for overall and core results ran around minus 0.4% and +0.1%, respectively. Thus, the consensus prediction meaningfully missed the overall number.
* For the 12 months ended November, the overall PPI stood 4.5% higher than a year earlier. Excluding food and energy, the year-over-year increase was 1.8%. Over the last three months, producer prices (including food and energy) have risen at a 7.6% annual rate.
The Labor Department has now released the third and last of the government inflation series we follow closely each month. (The others are import prices and the CPI.) Therefore, I will soon publish a more detailed analysis of the performance of all three measures, as well as having the "Inflation Watch" graph on the home page of the GRA website updated.
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