The Producer Price Index (PPI) fell a seasonally adjusted 1.3 percent in September, according to a report Tuesday from the U.S. Department of Labor’s Bureau of Labor Statistics, after posting increases of 0.1 percent in both August and July.
Among finished goods, energy goods prices declined 8.4 percent last month, after rising 0.3 percent in August. Finished consumer foods rose 0.7 percent, slowing from August’s 1.4-percent gains. Excluding volatile foods and energy, finished goods prices climbed 0.6 percent in September after dipping 0.4 percent in August.
At the earlier stages of processing, the BLS said, prices received by manufacturers of intermediate goods fell 1.4 percent in September, after increasing 0.4 percent in August. Leading the decline were intermediate energy goods, which fell 7.5 percent after rising 0.7 percent in August. Materials for nondurable manufacturing fell 1.5 percent, after rising 0.2 percent increase in August, while growth in materials and components for construction was halved, from August’s 0.4 percent increase to 0.2 percent. Meanwhile, intermediate foods and feeds moved up 0.8 percent, after declining 0.2 percent in August, and materials for durable manufacturing increased at 0.5 percent, up from August’s 0.4 percent. Excluding foods and energy, intermediate goods prices edged up 0.1 percent in September after rising 0.4 percent the preceding month.
The crude-goods index dropped 3.4 percent, after gaining 2.2 percent in August. Prices for crude energy materials dropped 8.4 percent in September (led by natural gas), after rising 5.9 percent rise the preceding month. Crude foodstuffs and feedstuffs increased 2.3 percent, after gaining only 0.1 percent in August. And excluding food and energy, crude materials gained 1.0 percent after decreasing 2.8 percent in August.
For the third quarter, the BLS said, prices for finished goods decreased at a seasonally adjusted annual rate (SAAR) of 4.4 percent, after rising at a 6.4-percent SAAR in the second quarter. Excluding prices foods and energy, the finished goods index edged down at a 0.3-percent SAAR for the quarter ending Sept. 30, after rising at a 2.3-
percent SAAR for the 3 months that ended June 30. At earlier stages, the intermediate goods index fell at a 1.9-percent SAAR in the third quarter, after climbing at a 10.3-percent SAAR from March to June. The crude-goods index moved up at an 8.0-
percent SAAR for the quarter, lagging the 6.4-percent rate of increase in the second quarter.
Before seasonal adjustment, the PPI for Finished Goods decreased 1.1 percent in September, to 160.3 points (where 1982 = 100). From September 2005 to September 2006, prices for finished goods rose 0.9 percent. Over the same period, prices for finished consumer foods climbed 2.2 percent, finished energy goods declined 1.8 percent, and non-food, non-energy finished goods went up 1.2 percent.
For the 12 months ended September 2006, intermediate goods prices advanced 4.7 percent, the BLS said, and the crude goods index decreased 7.8 percent.
The Bureau of Labor Statistics’ PPI news release, tables and additional data can be found online at www.bls.gov/ppi.
