Producer Price Index Slips In September

Inflation at the producer level has basically disappeared and even turned negative. The PPI for total final demand in September slipped 0.1, following no change the month before. Analysts expected a rise of 0.1 percent. Total final demand excluding food & energy was unchanged after easing to 0.1 percent in August. The median market forecast was for 0.1 percent. Total final demand excluding food, energy, and trade services dipped 0.1 percent after rising 0.2 percent in August.

The index for final demand goods moved down 0.2 percent in September, the second consecutive decrease. The September decline was led by prices for final demand energy, which fell 0.7 percent. The index for final demand foods also decreased 0.7 percent. In contrast, prices for final demand goods less foods and energy advanced 0.2 percent.

The index for final demand goods moved down 0.2 percent in September, the second consecutive decrease. The September decline was led by prices for final demand energy, which fell 0.7 percent. The index for final demand foods also decreased 0.7 percent. In contrast, prices for final demand goods less foods and energy advanced 0.2 percent.

On a seasonally adjusted year-ago basis, PPI final demand was up 1.6 percent in September versus 1.8 percent in August. Excluding food & energy, PPI final demand was up 1.8 percent, versus the August pace of 1.6 percent.

Inflation numbers are very soft and giving central banks leeway to easy monetary policy

Recent History Of This Indicator:
The producer price index for final demand in August was unchanged after a 0.1 percent gain in July. Food and energy softened producer prices in August. Total final demand excluding food & energy eased to 0.1 percent in August after rising 0.2 percent the month before. Total final demand excluding food, energy, and trade services increased 0.2 percent in August, matching the July rate. The final demand services index climbed 0.3 percent in August after inching up 0.1 percent in July. Eighty percent of the August advance can be traced to a 0.3-percent rise in prices for final demand services less trade, transportation, and warehousing. The index for final demand transportation and warehousing services also increased 0.3 percent. The index for final demand goods moved down 0.3 percent in August, the largest decrease since a 0.7-percent drop in April 2013. Over 80 percent of the August decline is attributable to prices for final demand energy, which fell 1.5 percent. The index for final demand foods decreased 0.5 percent.