PPI Suggests Lower Inflation; NAM President Concurs

Jan. 13, 2005
By John S. McClenahen Referring to the cadets at West Point, five-star General Douglas MacArthur said his final thoughts would be of the Corps, the Corps, the Corps. These days, referring to the inflation rate, economists thoughts are of the core, the ...
ByJohn S. McClenahen Referring to the cadets at West Point, five-star General Douglas MacArthur said his final thoughts would be of the Corps, the Corps, the Corps. These days, referring to the inflation rate, economists thoughts are of the core, the core, the core. And the Producer Price Index, released Nov. 9 by the U.S. Labor Dept.'s Bureau of Labor Statistics, suggests that in the U.S., inflation remains well-contained -- and may well be on a decline again. Although the overall PPI rose a higher-than-expected 0.4% in October, the core PPI fell 0.1%, "weaker than expected and . . . up just 1% during the past year," stresses Gerald D. Cohen, a senior economist at Merrill Lynch & Co., New York. "With [GDP] growth downshifting to a moderate path, we believe deflation will continue," he adds. What these numbers tell us "is that increases in relative prices have failed to trigger a wider acceleration in wages and prices," says Jerry J. Jasinowski, president of the National Assn. of Manufacturers, Washington, D.C. "Demand is slowing down, and productivity remains very strong, and while there may be some increases in energy prices during the winter months, on the whole inflation is still pretty well contained."

Popular Sponsored Recommendations

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

Transformative Capabilities for XaaS Models in Manufacturing

Feb. 14, 2024
The manufacturing sector is undergoing a pivotal shift toward "servitization," or enhancing product offerings with services and embracing a subscription model. This transition...

Shifting Your Business from Products to Service-Based Business Models: Generating Predictable Revenues

Oct. 27, 2023
Executive summary on a recent IndustryWeek-hosted webinar sponsored by SAP

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!