The Producer Price Index for finished goods declined 0.2 percent in October, seasonallyadjusted, the U.S. Bureau of Labor Statistics reported today.
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Prices for finished goods increased 1.1 percent in September and 1.7 percent in August.
At the earlier stages of processing, prices received by manufacturers of intermediate goods edged down 0.1 percent in October, and the crude goods index moved up 0.9 percent.
On an unadjusted basis, the finished goods index advanced 2.3 percent for the 12 months ended October 2012, the largest rise since a 2.8-percent increase for the 12 months ended March 2012. (See table A.)
In October, the decrease in the finished goods index is attributable to prices for finished energy goods and the index for finished goods less foods and energy, which declined 0.5 percent and 0.2 percent, respectively. By contrast, prices for finished consumer foods advanced 0.4 percent.
The index for finished energy goods moved down 0.5 percent in October after increasing 4.7 percent a month earlier. A 2.2-percent drop in gasoline prices accounted for most of this decrease.
The index for finished goods less foods and energy moved down 0.2 percent in
October, the first decline since a 0.1-percent decrease in November 2010.
In October, prices for finished consumer foods advanced 0.4 percent, the fifth
consecutive increase. Leading the October rise, the index for dairy products climbed 3.0 percent.
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Original content Bob DeMarco, All American Investor