Gasoline, fresh fruit show big increases; rolling PPI rate hits 2.1%
By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) — The producer price index climbed 1.1% in September after an increase of 1.7% in August, according to government data released Friday.
The core wholesale price index, which excludes food and energy prices, was flat in September after a 0.2% gain in the prior month.
Economists surveyed by MarketWatch had expected a 1.0% rise in the headline PPI and a 0.2% increase in the core rate.
The gain in producer prices, tracking the level of inflation at the wholesale level, was due to continued higher energy costs — particularly gasoline.
Energy prices advanced 4.7% in September after having risen 6.4% in August. A 9.8% gain in gasoline prices accounted for more than 80% of the September gain, the Labor Department said.
Food prices rose 0.2% in September, for the fourth consecutive increase.
In the core price index, higher prices for light motor trucks were offset by declining prices for communications equipment.
Compared with a year ago, the producer price index is up 2.1%, the highest level since March. Core prices are up 2.3% over the past 12 months, .
Producer prices of intermediate goods such as flour or cotton yarn, which have been processed but require further processing, rose 1.5%, the largest increase since February 2011.
Prices for crude goods like grains, livestock and crude petroleum that haven’t been fabricated or manufactured and not sold to consumers, rose 2.8%.
Core intermediate goods, to which the Federal Reserve pays close attention for signs of inflation, rose 0.6% in September, the first gain after four straight declines.
The consumer price index, due for release next Tuesday, is projected to have increased 0.5% in September, according to the MarketWatch survey. Through August, the CPI was up 1.7% on a year-on-year basis.
On Thursday, the Labor Department said import prices grew 1.1% in September.
September PPI details
Light motor truck prices rose 0.3% after a 0.6% advance in the prior month.
Pharmaceutical costs grew 0.3%.
Computer and related equipment fell 1.5% in September, the biggest drop since August 2011.
Pet food prices rose 0.9% after a 0.5% gain in August.
Prices for fresh fruit jumped 11.1% in September.
Greg Robb is a senior reporter for MarketWatch in Washington.
