U.S. June PPI rose 0.5 pct

Biz.Yahoo/Reuters ^ | July 11, 2003

[Starwind]

U.S. June PPI rose 0.5 pct Friday July 11, 8:32 am ET

   WASHINGTON, July 11 (Reuters) - U.S. Labor Department monthly
producer price index (1982 equals 100, except where noted):
.                         Seasonally Adj   Unadjusted
.                           June     May    June03/02
Finished Goods               0.5    -0.3       2.9
 Less Food, Energy          -0.1     0.1      -0.3
 Consumer Foods              0.4     0.1       3.9
 Energy Goods                3.4    -2.6      15.3
 Finished Goods Index(X)   143.1   142.1       N/A
 Residential NatGas(W)       3.6     0.8      35.5
 Gasoline                    7.6   -11.1      16.5
 Heating Oil                 9.0   -14.6      23.7
 Tobacco Products(X)        -0.1     0.2      -7.9
 Passenger Cars             -0.7     0.2      -1.3
 Capital Equipment          -0.1     0.1      unch
 Pharmaceutical Preps        0.7    -0.1       4.2
Intermediate Goods           0.5    -0.8       4.5
 Less Food, Energy          unch    -0.1       2.1
 Manufact Materials          0.3    -0.3       2.9
 Construction Materials      0.1     0.1       1.1
 Intermed.Energy Goods       2.0    -4.4      14.9
Crude Goods                 4.5     1.7       29.4
 Less Food, Energy(Y)       0.6    -1.9        4.9
 Food/Feedstuffs           -0.5     2.4       13.6
 Nonfood Materials          7.7     1.2       40.8
 Energy Materials(Z)       10.7     2.5       61.5
 Petroleum(X)              12.3    -3.8       30.3
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. June producer prices +0.2 pct
 U.S. June producer prices ex-food/energy +0.1 pct
 HISTORICALS:
 U.S. JUNE PPI RISE BIGGEST SINCE +1.6 IN MARCH 2003

[Starwind]

The full BLS report is at Producer Price Indexes -- June 2003

Note the bulk of the price increases are due to energy and economists were expecting .1 w/o food & energy....so little pricing power has emerged so far for producers.

[Starwind]

Fyi...

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[Lee'sGhost]

Uh, could your provide a short analysis for those of us who are PPI chart challenged?

[Starwind]

Uh, could your provide a short analysis for those of us who are PPI chart challenged?

The numbers shown are an 'index' - a computed and weighted number - which reflects the ability of producers in each category to charge and receive the price they want in their market for whatever they produce, i.e. how much power they have to raise prices.

The table shows food and energy producers are able to raise prices, most others are somewhat flat or lowering prices.

Read or browse the full report - you may find it educational.

[cincinnati65]

Now that PPI has ticked up, I guess Alan Greenspan will raise the fed funds rate by 600 or 700 basis points, right?

[steveegg]

Now that PPI has ticked up, I guess Alan Greenspan will raise the fed funds rate by 600 or 700 basis points, right?

It's slightly too early for Greenspam to do that. I'd look at that happening around December to maximize the damage to Bush.

[Starwind]

Now that PPI has ticked up,

Well, without the increased energy costs (Nat Gas shortage, oil is back to pre-OIF levels, etc..) and food, the core PPI actually ticked down.

[cincinnati65]

True enough. I saw that, but you know how TERRIFIED Greenspan is of inflation. Did I just say the 'i' word?

[Starwind]

but you know how TERRIFIED Greenspan is of inflation.

And deflation, and stock market crash, and no recovery, and......he's probably not sleeping much these days, well, except maybe when he testifies.