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.