U.S. Producer Price Index shows inflation at bay
Wednesday, November 16, 2005
The Producer Price Index for October report released today shows prices for finished goods increased by 0.7 percent in October, prices rose by 1.9 percent in September.
Liquid Petroleum Gas climbed 1.4 percent compared with 24.7 percent in September. Gasoline dropped 3.3 percent, it increased 12.7 in September. Diesel fuel climbed 22.7 percent, having advanced 1.5 percent the previous month.
Prices for foods changed very little, a mere 0.1 percent decline, it increased 1.4 percent the previous month.
The Producer Price Index is a US government report on prices as seen from the producer of goods. This shows prices before effects such as government subsidies, sales and excise taxes, and distribution costs. The index is used as a leading indicator of consumer inflation in the future as changes in price will eventually flow down to the consumer.
The index can be found at the US Department of Labor web site.