PPI Provides Two Reasons Not To Raise Interest Rates

Sept. 19, 2006
In August, the Producer Price Index (PPI) for finished goods rose just one-tenth of a percent for the second consecutive month. Also in August the PPI minus price changes for food and fuel decreased for the second consecutive month. Those facts are two ...

In August, the Producer Price Index (PPI) for finished goods rose just one-tenth of a percent for the second consecutive month. Also in August the PPI minus price changes for food and fuel decreased for the second consecutive month. Those facts are two reasons for the Federal Open Market Committee not to raise short-term interest rates when it meets on September 20. The influential federal funds target rate is now at 5.25%.

Higher prices for food and energy in August just slightly offset falling prices for other consumer goods and for capital equipment to produce the tenth of a percent increase in the overall PPI, the U.S. Labor Department explained as it released the latest data on September 19. However, the core PPI, which does not count price changes for food and fuel, fell four-tenths of a percent in August, its largest one-month decline this year and a contrast to monthly increases from January through June.

Popular Sponsored Recommendations

Gain a competitive edge with real-world lessons on private 5G networks

Nov. 16, 2023
The use of private networks in manufacturing applications is rapidly growing. In this paper, we present valuable insights and lessons learned from the field with the goal of enhancing...

Discover How an Eye Tracking Study Improves Training Procedures

Oct. 29, 2023
Did you know that your training processes can be streamlined by visualizing and analyzing key skills within your employee base? Find out how we use eye tracking to capture advanced...

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...

Food and Beverage 2024 Trends and Outlook for North America

Oct. 29, 2023
Ready to hear what 200 of your peers said are the top challenges and opportunities in 2024? Don’t fall behind. Uncover actionable insights to better prepare for 2024 in this whitepaper...

Voice your opinion!

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