Input Stories

Producer prices were essentially unchanged from August to September, beating economists’ expectations (RTTNews).

What’s going on: “The Labor Department said [today] its producer price index for final demand came in flat in September after rising by 0.2 percent in August. Economists had expected producer prices to inch up by 0.1 percent.”

• “The report also said the annual rate of growth by producer prices slowed to 1.8 percent in September from an upwardly revised 1.9 percent in August.”

Core PPI: However, core producer prices—which exclude often-volatile food and energy costs—increased 2.8% year over year, a pickup from August’s 2.6% rate (CNN).

• On a monthly basis, core PPI rose 0.2%.

The backdrop: The producer price numbers come a day after the news that the Consumer Price Index had cooled, though not as much as anticipated.    

What it means: “Some of the inventory accumulation that was pulled forward in anticipation of the port strike was absorbed because [third quarter] growth was so strong,” economist Joe Brusuelas told CNN. “So, we’re seeing a little bit of pricing pressure around that. Then again, those are temporary and will ease a bit as we go forward.”