September Producer Prices Dominated by Food and Energy
The report on wholesale inflation for the month of September is out and running a bit. The U.S. Labor Department said that the Producer Price Index (PPI) rose by 1.1% on the headline reading, but the core PPI, which strips…
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On a year-over-year basis, the readings are a bit hot compared to the Federal Reserve’s 2% target, but they are down slightly from the prior month. Year-over-year, the headline PPI is up by 2.1%, but the core was up by 2.3%.
Obviously the headline data was dominated by drought prices for food and higher oil prices for much of the month. The good news is that some of this has abated (outside of California at any rate), and it generally takes several months of hot wholesale prices before Joe Public starts seeing the prices systematically passed down to the consumer price index.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
