Producer prices in September confirm the jump consumers saw at the grocery store.
The BLS report the Producer Price Index was unchanged in September. despite a surge in the price of food.
PPI Final Demand Key Detail Month-Over-Month
- PPI: +0.0 Percent
- Services: +0.2 Percent
- Goods: -0.2 Percent
- Excluding Food and Energy: +0.5 Percent
- Food: +1.0 Percent
- Energy: -0.7 Percent
Energy more than offset the jump in food because the increase in services has more weight than the decline in goods.
PPI Year-Over-Year
PPI Final Demand Year-Over-Year Details
- PPI: +1.8 Percent
- Goods: -1.1 Percent
- Services: +3.1 Percent
- Energy: -13.8 Percent
- Food: 3.2 Percent
- Excluding Food and Energy: 2.8 Percent
The year-over-year trends are inching up despite a massive drop in energy.
CPI Good News on Shelter and Energy But Food Jumps
Yesterday, I noted CPI Good News on Shelter and Energy But Food Jumps
The CPI was a mix of good and bad in September. The good outweighs the bad especially for renters. But what’s ahead?
The Cost of Food Increased 0.4 Percent in Sept, What’s in Your Basket?
Also consider The Cost of Food Increased 0.4 Percent in Sept, What’s in Your Basket?
The BLS just handed Trump a huge campaign talking point. Five charts.
Increase From Pre-Pandemic
- Food at Home: +26.34 percent
- Food Away From Home: 28.7 percent
- Fruits and Vegetables: +18.0 percent
- Meat, Fish, Poultry, Eggs: +30.3 percent
- Cereals +28.6 percent
- Dairy: +20.6 percent
Looking Ahead
I expect further improvement in shelter, due to falling rent and OER. That is very good news given their weight in the CPI. Short term, the good new might end there.
The price of crude has spiked so energy costs will rise.
Medical care services is another hot spot that is bad news. Unfortunately, I expect the bad news will continue.
The hurricanes will drive up the cost of home repairs and materials, perhaps substantially.
Insurance costs will rise everywhere as insurers will look to spread out the damages.
I will go over medical costs later today.
Ridiculous Answers from Harris and Trump Regarding Food Costs
On September 27, I noted Ridiculous Answers from Harris and Trump Regarding Food Costs
Both candidates have been asked questions what they would do about the rising cost of food. Let’s discuss their answers.
Trump also blamed imports. That is preposterous. Reducing imports would raise prices. And if Trump deports migrant crop pickers, prices will skyrocket.
Click on the post for a discussion of the correct answer. Hint: Think of something President Reagan said.