Producer Price Index for Finished Goods Falls 0.8%
The Department of Labor's Bureau of Labor Statistics released its November update on the Producer Price Index this morning [link opens in PDF]. Seasonally adjusted finished goods costs declined for the second straight month, falling 0.8% in November after a 0.2% decline in October.
A BLS chart depicts a continuing trend of slowing growth in price inflation. The PPI was up 1.7% month-to-month in August, then up only 1.1% in September. After that, the index descended into the negative territory we're in today, with October's small decline followed by a bigger decline in November.
BLS attributes the falling costs to declines in the prices for "finished energy goods" -- down 4.6% in November, the largest decline
since a 4.6% decrease in March 2009. As for other elements considered in the survey, their prices appear to be going up, with finished consumer foods and other finished goods both rising in the month -- up 1.3% and 0.1%, respectively.
The Producer Price Index for intermediate materials, supplies, and components dropped 1.2% in November, the largest decline since falling 1.5% in March 2009. The Producer Price Index for crude materials for further processing inched up 0.1% in November.
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