Wholesale Prices in U.S. Unexpectedly Fell in September on Food
Retail Sales Drop on Weak Auto Sales
Economic Event | Period | Economic Survey | Actual Reported | Original Prior | Revised Prior |
PPI MoM | Sep | 0.20% | -0.10% | 0.30% | -- |
PPI Ex Food and Energy MoM | Sep | 0.10% | 0.10% | 0.00% | -- |
PPI YoY | Sep | 0.60% | 0.30% | 1.40% | -- |
PPI Ex Food and Energy YoY | Sep | 1.20% | 1.20% | 1.10% | -- |
Retail Sales Advance MoM | Sep | 0.00% | -0.10% | 0.20% | -- |
Retail Sales Ex Auto MoM | Sep | 0.40% | 0.40% | 0.10% | -- |
Retail Sales Ex Auto and Gas | Sep | 0.50% | 0.40% | 0.10% | -- |
Retail Sales Control Group | Sep | 0.40% | 0.50% | 0.20% | -- |
Wholesale prices in the U.S. unexpectedly dropped in September as food costs retreated, an indication inflation remains tame.
The 0.1 percent decrease in the producer price index followed a 0.3 percent gain the prior month. The median estimate in a Bloomberg survey of 80 economists called for a 0.2 percent advance. The so-called core measure, which strips out volatile food and fuel, increased 0.1 percent after being unchanged in August. Soft global demand has limited cost increases for raw and
finished materials, restraining the pricing power of U.S. companies. That’s helping to hold the line on inflation, which the Federal Reserve sees running below its 2 percent objective in the near-term, giving policy makers room to maintain monetary
stimulus when they meet this week.
Retail Sales showed a 0.4 percent gain in purchases excluding vehicles followed a 0.1 percent increase in August and matched the median forecast of economists surveyed by Bloomberg. Total sales dropped 0.1 percent, restrained by the biggest decrease at auto dealers since October 2012, as purchases early in the month were included in the August data. The Labor Department’s report showed wholesale prices rose 0.3 percent compared with the same month a year before after a 1.4 percent rise. The core index increased 1.2 percent in the 12 months ended September, following a 1.1 percent gain. Fuel costs climbed 0.5 percent last month from August, including increases in home heating oil and natural gas. The cost of finished consumer foods dropped 1 percent, the most since April, led by declining costs for vegetables and beef and veal.
It will be interesting to see what happens to retail sales once the current lower fuel prices work themselves into the numbers.
John Broussard
Assistant State Treasurer
Chief Investment Officer
State of Louisiana
Department of the Treasury
225-342-0013
jbroussard@treasury.state.la.us
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