Producer Prices Plunge

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.


NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at