Gain in U.S. Wholesale Prices Driven by Jump in Energy Costs
Thursday, 12 October 2017 19:51 WIB | ECONOMY |Ekonomi ASPPI
A spike in gasoline costs following Hurricane Harvey boosted U.S. wholesale prices in September by the most in five months, a Labor Department report showed Thursday in Washington.
Producer-price index rose 0.4% (matching est.) after 0.2% increase the previous month.
PPI advanced 2.6% from a year earlier, the largest advance since February 2012, after 2.4% gain in prior 12-month period.
Excluding food and energy, core gauge rose 0.4% from prior month and was up 2.2% from September 2016 .
The PPI reflected a 0.7 percent gain in the cost of goods and a 0.4 percent increase in services prices. About 80 percent of the September increase in goods was due to a 3.4 percent surge in energy, which was the largest since the start of the year.
Gasoline prices shot up 10.9 percent as Harvey stalled over the Gulf Coast of Texas and temporarily shut down refining capacity.
Historically, there has not been a long-dated impact from hurricanes, so the current acceleration in prices should reverse as production is restored, according to Bloomberg Intelligence. The Labor Department said in a note accompanying the PPI data that the storms œhad virtually no impact on the collection of data or survey response rates.
The PPI excluding food, energy, and trade services, a measure some economists prefer because it strips out the most volatile components, rose 2.1 percent from September 2016, the biggest gain since May, indicating some upward inflation pressure.
Source : Bloomberg