Producer Prices Slipped In October
November 21, 2013 by UPI - United Press International, Inc.
WASHINGTON, Nov. 21 (UPI) — The U.S. Producer Price Index for finished goods fell 0.2 percent September to October, the Bureau of Labor Statistics reported Thursday.
It was the second consecutive month the index has dropped, which suggests weak economic activity, as strong demand puts upward pressure on prices.
October’s drop may be taken with a gain of salt, however, as energy prices pushed the decline by dropping 1.5 percent and energy prices have been largely influenced by rising supplies, rather than a significant drop in demand.
Core prices, which exclude food and energy items, rose 0.2 percent in October, as food prices paid to producers climbed 0.8 percent in the month.
Core prices have risen in each of the past 12 months, while energy prices have fallen in six of the past 12 moths and food prices have dropped in five.
Prices for goods in the intermediate stage of production — down in four of the past 12 months — dropped 0.4 percent in October, while prices for raw materials fell 0.9 percent, moving lower for the fifth month since October 2012.