Tuesday, November 17, 2009

Producer Price Index

The latest Producer Price Index (PPI) news release
was issued today by the Bureau of Labor Statistics. Highlights are below.

The PPI tracks the prices of goods before they reach store shelves and is considered a predictor of price trends. This small increase in wholesales prices suggests inflation is not a current concern of the Federal Reserve System and they are expected to keep interest rates near zero to encourage economic growth to spur continued recovery from the economic recession.


The Producer Price Index for Finished Goods advanced 0.3 percent in October, seasonally adjusted. This increase followed a 0.6-percent decline in September and a 1.7-percent rise in August. Prices for finished goods other than foods and energy fell 0.6 percent after decreasing 0.1 percent in September.

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