The PPI rose 0.8% MOM in September! This is basically a 10% annual rate of PPI inflation! Imagine what REAL inflation is if the government's bogus PPI is admitting monstrous inflation!
PRODUCER PRICE INDEXES - SEPTEMBER 2011
The Producer Price Index for finished goods rose 0.8 percent in September, seasonally adjusted,
the U.S. Bureau of Labor Statistics reported today. Finished goods prices were unchanged in
August and increased 0.2 percent in July. At the earlier stages of processing, prices received by
manufacturers of intermediate goods moved up 0.6 percent in September, and the crude goods
index advanced 2.8 percent. On an unadjusted basis, prices for finished goods climbed 6.9
percent for the 12 months ended September 2011.
Stage-of-Processing Analysis
Finished goods
In September, the increase in the index for finished goods was broad based, with prices for
finished energy goods rising 2.3 percent, the index for finished goods less foods and energy
moving up 0.2 percent, and prices for finished consumer foods advancing 0.6 percent.
Finished energy: The index for finished energy goods advanced 2.3 percent in September after
decreasing in each of the previous three months. Nearly seventy percent of this rise can be
attributed to the gasoline index, which increased 4.2 percent. Higher prices for liquefied
petroleum gas and diesel fuel also were factors in the rise in the finished energy goods index.
(See table 2.)
Finished core: The index for finished goods less foods and energy moved up 0.2 percent in
September, the tenth straight increase. In September, one-third of the advance can be traced to
prices for light motor trucks, which rose 0.6 percent. Higher prices for household detergents also
contributed to the increase in the finished core index.
Finished foods: Prices for finished consumer foods climbed 0.6 percent in September, the
fourth consecutive monthly increase. Accounting for over eighty percent of the September
advance, prices for fresh and dry vegetables increased 10.0 percent.
Intermediate goods
The Producer Price Index for intermediate materials, supplies, and components climbed 0.6
percent in September after falling 0.5 percent in August. Over two-thirds of this broad-based
advance can be traced to prices for intermediate energy goods, which rose 1.7 percent in
September. The indexes for intermediate goods less foods and energy and for intermediate foods
and feeds also contributed to the increase in intermediate goods prices, moving up 0.2 percent
and 0.9 percent, respectively. For the 12 months ending September 2011, the intermediate goods
index jumped 10.5 percent. (See table B.)
Intermediate energy: Prices for intermediate energy goods increased 1.7 percent in September
following a 2.3-percent drop in August. A major factor in this rise was the index for diesel fuel,
which rose 7.3 percent. Higher prices for gasoline and liquefied petroleum gas also were
significant contributors in the advance in the intermediate energy goods index. (See table 2.)
Intermediate core: The index for intermediate goods less foods and energy moved up 0.2
percent in September after edging down 0.1 percent in August. Leading this increase, prices for
primary basic organic chemicals rose 2.4 percent in September. An advance in the index for
plastic resins and materials also contributed to higher intermediate core prices.
Intermediate foods: The index for intermediate foods and feeds climbed 0.9 percent in
September, the fourth straight advance. A 3.2-percent increase in prices for prepared animal
feeds accounted for over eighty percent of the September rise in the intermediate foods index.
Crude goods
The Producer Price Index for crude materials for further processing moved up 2.8 percent in
September. For the 3-month period ending in September, prices for crude materials advanced 1.8
percent following a 1.1-percent decrease from March to June. In September, the monthly increase
in the crude goods index is mostly attributable to prices for crude energy materials, which
jumped 7.7 percent. Also contributing to the September climb was the index for crude nonfood
materials less energy, which advanced 1.0 percent. By contrast, prices for crude foodstuffs and
feedstuffs moved down 0.9 percent. (See table B.)
Crude energy: The index for crude energy materials rose 7.7 percent in September. From June
to September, prices for crude energy materials declined 0.5 percent subsequent to a 5.1-percent
decrease for the three months ending in June. The monthly advance in September was led by a
23.0-percent jump in the crude petroleum index. Higher prices for coal also were a factor in the
rise in the crude energy index. (See table 2.)
Crude core: The index for crude nonfood materials less energy rose 1.0 percent in September.
For the 3 months ending in September, crude core prices advanced 3.3 percent after climbing 2.5
percent from March to June. In September, over eighty-five percent of the monthly increase is
attributable to the gold ore index, which rose 8.4 percent. A rise in raw cotton prices also
contributed to the advance in the crude core index.
Crude foods: The index for crude foodstuffs and feedstuffs fell 0.9 percent in September.
From June to September, prices for crude foods moved up 2.9 percent following a 1.4-percent
increase for the 3-month period ending in June. A major factor in the September monthly
decrease was a 7.4-percent decline in the fluid milk index. Lower prices for slaughter hogs also
contributed to the crude foods decrease.
Services Analysis
Trade industries: The Producer Price Index for the net output of total trade industries inched
up 0.1 percent in September, the second consecutive increase. (Trade indexes measure changes in
margins received by wholesalers and retailers.) Leading the September advance were margins
received by clothing stores, which moved up 11.1 percent. Higher margins received by merchant
wholesalers of nondurable goods and discount department stores also were factors in the rise in
the total trade industries index.
Transportation and warehousing industries: The Producer Price Index for the net output of
transportation and warehousing industries declined 0.9 percent in September after increasing in
each of the last 11 months. Nearly all of the September decline can be traced to a 5.7-percent
drop in the index for scheduled passenger air transportation. Lower prices for long-distance
general freight trucking (truckload) and air transportation support activities also contributed to
the decrease in the transportation and warehousing industries index.
Traditional service industries: The Producer Price Index for the net output of total traditional
service industries edged up 0.1 percent in September, the fourth consecutive advance. The index
for the commercial banking industry led the September increase, rising 1.5 percent. Higher prices
received by offices of physicians and by non-casino hotels and motels also were factors in the
advance in the index for total traditional service industries.
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The Producer Price Index for October 2011 is scheduled to be released on Tuesday,
November 15, 2011 at 8:30 a.m. (EST).
http://www.bls.gov/news.release/ppi.nr0.htm
