Posted on 06/13/2003 7:53:55 AM PDT by Starwind
U.S. May PPI fell 0.3 pct
Friday June 13, 8:29 am ET
WASHINGTON, June 13 (Reuters) - U.S. Labor Department monthly producer price index (1982 equals 100, except where noted): . Seasonally Adj Unadjusted . May April May03/02 Finished Goods -0.3 -1.9 2.5 Less Food, Energy 0.1 -0.9 -0.1 Consumer Foods 0.1 0.9 3.7 Energy Goods -2.6 -8.6 11.9 Finished Goods Index(X) 142.1 142.1 N/A Residential NatGas(W) 0.8 -3.1 31.5 Gasoline -11.1 -22.3 9.5 Heating Oil -14.6 -29.3 8.2 Tobacco Products(X) 0.2 -8.4 -7.8 Passenger Cars 0.2 -2.6 -0.5 Capital Equipment 0.1 -0.5 0.2 Pharmaceutical Preps -0.1 0.8 4.1 Intermediate Goods -0.8 -2.2 4.2 Less Food, Energy -0.1 unch 2.2 Manufact Materials -0.3 -0.3 2.9 Construction Materials 0.1 0.2 1.1 Intermed.Energy Goods -4.4 -11.2 13.2 Crude Goods 1.7 -16.3 19.1 Less Food, Energy(Y) -1.9 -1.3 7.3 Food/Feedstuffs 2.4 0.9 12.7 Nonfood Materials 1.2 -24.2 23.4 Energy Materials(Z) 2.5 -31.1 31.7 Petroleum(X) -3.8 -21.5 -4.3 W-1990=100 X-not seasonally adjusted. Y-excludes crude petroleum Z-Includes crude petroleum. N/A-not available FORECAST: Reuters survey of economists forecast: U.S. May producer prices -0.2 pct U.S. May producer prices ex-food/energy +0.1 pct
(Updates with market reaction, more details)WASHINGTON, June 13 (Reuters) - U.S. wholesale prices fell in May as the end to the Iraq war caused energy prices to tumble, the government said on Friday, but the drop was mild enough to soothe worries about broad-based price declines.
The Labor Department's Producer Price Index, which measures prices paid to farms, factories and refineries, fell 0.3 percent in May. Excluding food and energy, the "core" PPI rose 0.1 percent.
Financial markets showed little reaction to the number, which was released at the same time that the Commerce Department reported a narrowing of the U.S. trade deficit to $42.03 billion in April. While smaller, the deficit was still the third-highest on record.
"The producer price index came in a little below expectations but it really wasn't that surprising," said economist Mark Vitner of Wachovia Securities in Charlotte, North Carolina.
The overall PPI drop was just a bit steeper than the 0.2 percent decline projected by private economists and the "core" measure matched forecasts.
The report may help ease some nervousness about deflation, or broad price declines. The Federal Reserve has been keeping a close eye on the risk of deflation, although officials have said the threat of it occurring is remote. Many analysts expect the central bank to cut interest rates at its next meeting on June 24-25.
While the overall PPI did not offer cause for any further concern about deflation, some analysts focused on a 0.8 percent drop in the price index for "intermediate" or partially processed goods.
"The pipeline on inflation, which had been picking up, appears to be moderating," said Cary Leahey, economist at Deutsche Bank Securities in New York.
In April, the PPI plummeted a record 1.9 percent, pushed lower by energy costs.
Energy prices fell 2.6 percent in May, while food prices rose 0.1 percent. Gasoline costs sank 11.1 percent. The cost of passenger cars edged up 0.2 percent and capital equipment costs gained 0.1 percent.
Over the last 12 months, the PPI has risen 2.5 percent but has fallen 0.1 percent excluding food and energy cost.
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