The Econoday consensus expected this jump due to hurricane impacts.

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A rebound for services and also hurricane-related increases in energy prices fed an as-expected 0.4 percent gain in producer prices for September. When excluding food and energy and also trade services, the gain moderates to only 0.2 percent which is also expected.

Energy prices at the producer level jumped 3.4 percent in the month following August's 3.3 percent spike in what the Labor Departments says is a clear hurricane effect. Food prices are not showing any effects from the hurricanes, unchanged following a 1.3 percent decline in August. Excluding food and energy, September's producer prices rose 0.4 percent which is higher than expected and reflects pressure in services.

Trade services jumped 0.8 percent in the month but follow no change in August and a 0.2 percent decline in July. Taking the 3 months together, wholesale pressures for services look moderate.


And also moderate but showing some lift are year-on-year rates, at 2.6 percent overall for a 2 tenths gain and 2.1 percent less food, energy & trade services which is also up 2 tenths. Today's report doesn't represent an upward shift for the nation's inflation picture but is favorable and will offers some support for Federal Reserve policymakers who see inflation gradually trending higher.

The hurricanes make it difficult to determine if anything price-related has really changed. The consesus is the effect is temporary, and I agree with the consensus.

Mike "Mish" Shedlock

CPI Up Less Than Expected Despite Hurricane-Related Energy Jump

The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.5 percent in September on a seasonally adjusted basis. Over the last 12 months, the all items index rose 2.2 percent. The gasoline index increased 13.1 percent accounting for about three-fourths of the increase.

Retail Sales Jump Due to Hurricane Impact: GDP Impact?

Retail sales in September increased 1.6 percent from August. Hurricane impacts are clearly in play.

PPI Uneven Jump Hints at More Consumer Weakness, Trouble at Retailers

The BLS reported the Producer Price Index (PPI) for final demand rose 0.5%. This exceeded the Econoday consensus of 0.2% in a range of -0.2% to +0.3%. Details are interesting.

PPI Spikes 0.6% in January, Largest Jump in 20 Months: Start of Inflation Run? Will February Repeat?

According to the BLS, the Producer Price Index (PPI) for Final Demand rose 0.6% in January.

No Significant Price Pressures: PPI Underperforms Economists’ Expectations

The Producer Price Index (PPI) for final demand rose .2% in August vs an Econoday consensus expectation of 0.3%. Excluding food and energy, the PPI rose 0.1% vs an expectation of 0.2%.

Durable Goods Order Jump Led By Autos: Positive Hurricane Impact?

The Census Bureau reports “New orders for manufactured durable goods in August increased $3.9 billion or 1.7 percent to $232.8 billion, the U.S. Census Bureau announced today.

PPI Declines First Time Since August 2016

Producer prices unexpectedly declined in December. Trade services fell a steep 0.6 percent.

PPI for Goods and Services Diverge

The discrepancy between goods and services widened further this month as costs to produce good fell while services rose.

Existing Home Sales Rise First Time Since May: Hurricane Impacts Abate, NAR Begs for Subsidies

Existing home sales rose 0.7 percent, the first increase since May. The NAR reported 5.39 million sales at a seasonally adjusted annualized rate (SAAR) topping the Econoday consensus estimate of 5.30 million sales.