Today’s PPI for October showed deeper deflation than anyone expected.
The Producer Price Index for Finished Goods declined 0.6 per cent in September, seasonally
adjusted, the Bureau of labour Statistics of the U.S. Department of labour reported today. This
decrease followed a 1.7-per cent rise in August and a 0.9-per cent decline in July. In September, at
the earlier stages of processing, prices received by manufacturers of intermediate goods moved
up 0.2 per cent and the crude goods index fell 2.1 per cent. On an unadjusted basis, from
September 2008 to September 2009, prices for finished goods fell 4.8 per cent, the tenth
consecutive month of year-over-year declines.