Producer Prices Fall, Counter To Predictions

Jan. 13, 2005
By John S. McClenahen Economists generally thought the U.S. Labor Department's Producer Price Index (PPI) would rise by 0.4% in April, pulled up by higher gasoline prices. But when the data came out last Friday, May 10, they showed an unexpected 0.2% ...
ByJohn S. McClenahen Economists generally thought the U.S. Labor Department's Producer Price Index (PPI) would rise by 0.4% in April, pulled up by higher gasoline prices. But when the data came out last Friday, May 10, they showed an unexpected 0.2% decline. The decrease was led by a drop in consumer food prices, says the Bureau of Labor Statistics. The PPI had increased 1% in March. Prices for consumer foods declined 3.2% in April, with prices for fresh and dry vegetables posting a record decline of 46.5%. In April gasoline prices increased 4.2%, but that was a small fraction of their 21.3% rise in March. The so-called core PPI -- a measure that economists put a lot of stock in because it does not include volatile month-to-month changes in food and energy prices -- rose just 0.1% in April, the same amount as in March. In April, "there was a whiff of inflation in the pipeline as core crude goods [prices] leapt 3.6%," notes Maury Harris, chief U.S. economist at UBS Warburg, New York. "However," he adds, "with commodity prices moving mostly sideways recently, and final demand veering to the soft side, the Fed is not likely to be troubled much by this report."

Popular Sponsored Recommendations

Process Mining For Dummies

Nov. 19, 2023
Here it is. Everything you need to know about process mining in a single book, written in the easy-to-understand, hard-to-forget style that ‘For Dummies’ manages so effortlessly...

Smarter Savings for Manufacturers - Guide

Sept. 11, 2023
Boost your manufacturing sales and revenue while reducing costs. Learn how one platform can help your business be more agile and productive in today's market.

What Is Your Smart Factory IQ?

Sept. 24, 2023
It’s time to put Smart, data-driven manufacturing operations to the test. In this comprehensive whitepaper we show you how to determine the Artificial Intelligence Quotient (AIQ...

Discrete and Process Manufacturing 2024 Trends and Outlook for North America

Oct. 29, 2023
Manufacturers are reaping the benefits of automation and cloud-based solutions. Discover what is driving today's industry trends and how they can shape your growth priorities ...

Voice your opinion!

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