Prices Paid to U.S. Producers Post Smallest Advance This Year
Source: Bloomberg
Markets
Prices Paid to U.S. Producers Post Smallest Advance This Year
By Olivia Rockeman
October 14, 2021, 8:32 AM EDT Updated on October 14, 2021, 2:37 PM EDT
-- PPI advanced 0.5% in September, smallest increase this year
-- Final demand services prices cool on 16.9% drop in airfares
Prices paid to U.S. producers rose in September at the slowest pace of the year amid cooling costs of services including airfares as the delta variant impacted demand.
The producer price index for final demand increased 0.5% from the prior month and 8.6% from a year earlier, Labor Department data showed Thursday. Excluding volatile food and energy components, the so-called core PPI rose 0.2%, the smallest advance this year, and was up 6.8% from a year ago.
The median forecasts in a Bloomberg survey of economists called for a 0.6% month-over-month advance in the overall PPI and an 8.7% gain in the core figure. Stocks rose on better-than-estimated corporate earnings and the yield on the 10-year Treasury note eased.
The cost of services rose just 0.2%, the smallest gain in three months, partly reflecting an almost 17% drop in prices for airline passenger services, the PPI report showed. Including cheaper car rental prices, the data highlight inflationary cross-currents as the spread of the coronavirus impacted activities like travel. At the same time, goods prices kept rising at a steady pace.
Prices paid to producers for goods increased 1.3%, the most in four months. Forty percent of the advance in goods was attributed to energy, the Labor Department said.
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— With assistance by Sophie Caronello, and Chris Middleton
Read more: https://www.bloomberg.com/news/articles/2021-10-14/u-s-producer-price-growth-slows-by-more-than-expected
Or, from Aljazeera:
Economy | Business and Economy
US wholesale inflation surges to another record
US producer prices continued to rise last month, surging to their biggest annualised jump on record.
https://www.aljazeera.com/economy/2021/10/14/us-wholesale-inflation-surges-to-another-record
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From the source:
PPI for final demand advances 0.5% in September; goods rise 1.3%, services increase 0.2%
https://www.bls.gov/news.release/ppi.nr0.htm
