The Dept. of Labor stated this week that prices paid to US manufacturers of goods and services increased by 0.5 percent in the month of September.
A more moderate growth of 0.3 percent was anticipated by economists. The producer price index for final demand from the Labor Department went up 0.7% in August compared to the previous month.
The core product price index, which doesn’t include food and energy costs, went up 0.3%, which is more than the 0.2% increase seen the previous month.
The supplier price index has gone up 2.2% in the last year. That is a big jump from the 1.6% annual rise that was first reported in August. The number from August was changed to show that prices had gone up by 2%, which shows that inflation was higher than thought before.
Economists had predicted a yearly rise of 1.7%.
Core producer prices went up 2.7%, which was more than the 2.2% annual rise seen in August and more than the 2.1% rise most economists thought would happen.
The Producer Price Index is a list of the prices that U.S. goods and service manufacturers are paid every month. It includes purchases made for capital investments, purchases made by the government, and products paid for by people outside of the United States. Imports are left out, and sales taxes are not added. It is related to the consumer price index, which tracks the prices that people in the U.S. pay. Imports and taxes are counted in the consumer price index, but exports are not.
The main PPI numbers come from a measure of “final demand,” which looks at the prices paid by customers who actually use the goods.
Food, energy, and a measure of retail and wholesale profits called “trade services” were left out of what is often called “core core” producer prices. These prices went up 0.2% for the month, the same amount as the previous month. Compared to the same time last year, core producer prices went up 2.8%, which is a little less than the 2.9% rise seen in August.
The government stated that in September, the prices of produced goods for secondary demand went up by 0.5%. The measure for intermediate demand of unprocessed goods went up by 4%. This was due to the prices of unprocessed energy sources, especially crude oil, going up by 7.5%. Prices for services with intermediate demand went up by 0.3%. A big reason for the rise in services was an increase in the rent for stores.
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