Producer Price Index Unchanged In August – May Be An Indicator To Tomorrow’s CPI Report

Please Note: This is the Producer Price Index (PPI), not the Consumer Price Index (CPI). The Consumer Price Indices (CPI-U, CPI-W, and C-CPI-U) will be published tomorrow, September 15, at 8:30AM EDT. I will have my 2012 COLA Watch up tomorrow night or Friday.

The PPI is a measure of prices at the producer level (essentially the wholesale prices) for finished goods. It is usually a fair indicator of what the CPI will do. Quotes (in italics) are from the Bureau of Labor Statistics’ news release.

The Producer Price Index for finished goods was unchanged in August, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Finished goods prices advanced 0.2 percent in July and declined 0.4 percent in June.

The index for finished goods was unchanged in August, as a 1.1-percent increase in finished consumer foods prices and a 0.1-percent advance in the index for finished goods less foods and energy offset a 1.0-percent decrease in prices for finished energy goods.

This leads me to think that the CPI-W will change by very little from the July figure. Still on track for a COLA of about 3.3% though.

Advertisements
This entry was posted in 2012 COLA Watch. Bookmark the permalink.

2 Responses to Producer Price Index Unchanged In August – May Be An Indicator To Tomorrow’s CPI Report

  1. Ray E. Wood, MSgt. USAF/ret Nam Vet 69-70 says:

    3.6% now……………

    • ssapotluck says:

      Hello Ray

      Thanks for writing.

      We are at 3.5% now. Depending on what happens in September, this could go up or down, but only a little. If the increase in the CPI-W for September is the same as it was for August, 0.3%, then we will come out at 3.6%

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s