Producer Prices Moderate Their Rise

Nov. 15, 2005
Although the U.S. Labor Department's Producer Price Index (PPI) for finished goods continued to rise in October, the rate was not as great as in September. For all finished goods, the PPI rose seven-tenths of a percent last month, less than half ...

Although the U.S. Labor Department's Producer Price Index (PPI) for finished goods continued to rise in October, the rate was not as great as in September. For all finished goods, the PPI rose seven-tenths of a percent last month, less than half September's 1.9% increase.

The news about the core PPI, which excludes price changes for food and fuel, was even better. It declined three-tenths of a percentage point last month, a reversal of its three-tenths percent increase in September.

That, along with lower prices for non-energy consumer goods, heartened Peter Morici, a professor at the University of Maryland's Smith School of Business in College Park. The core PPI and the non-energy consumer goods price indexes are good predictors of future consumer-price inflation, and they suggest it will be tame in the months ahead, he notes. "Gasoline and crude oil prices fell in October and continue to fall in November, and natural gas futures for the heating season continue to moderate. Diesel prices did rise in October but have been falling in November. [And] a warm November bodes well for some moderation in heating costs this winter by extending the stock-building season for natural gas and heating oil."

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!