U.S. Oct PPI rose 0.8 pct

Biz.Yahoo/Reuters ^ | November 14, 2003

[Starwind]

U.S. Oct PPI rose 0.8 pct
Friday November 14, 8:31 am ET

   WASHINGTON, Nov. 14 (Reuters) - U.S. Labor Department monthly
producer price index (1982 equals 100, except where noted): 
.                         Seasonally Adj   Unadjusted
.                            Oct    Sept     Oct03/02
Finished Goods               0.8     0.3       3.4
 Less Food, Energy           0.5    unch       0.5
 Consumer Foods              2.2     1.2       8.5
 Energy Goods               -0.1     0.1       9.2
 Finished Goods Index(X)   145.5   143.9       N/A
 Residential NatGas(W)      -1.8     1.6      24.9
 Gasoline                   -3.0     2.2       3.7
 Heating Oil                 9.6   -14.3       3.2
 Tobacco Products(X)         0.5     0.1      -7.4
 Passenger Cars              1.6    -0.5      -0.4
 Capital Equipment           0.6    -0.1       0.9
 Pharmaceutical Preps        0.2     0.4       4.1
Intermediate Goods           0.4    -0.1       3.4
 Less Food, Energy           0.3     0.1       1.8
 Manufact Materials          0.5    -0.2       2.4
 Construction Materials      0.3     0.9       2.3
 Intermed.Energy Goods       0.6    -2.3       9.4
Crude Goods                  2.6     3.4      22.8
 Less Food, Energy(Y)        3.1     2.3      14.0
 Food/Feedstuffs             8.9     7.0      28.0
 Nonfood Materials          -1.5     1.1      19.2
 Energy Materials(Z)        -3.6     0.6      21.9
 Petroleum(X)                6.8    -8.4       6.5
W-1990=100
X-not seasonally adjusted. Y-excludes crude petroleum
Z-Includes crude petroleum. N/A-not available
 FORECAST:
 Reuters survey of economists forecast:
 U.S. Oct producer prices +0.2
 U.S. Oct producer prices ex-food/energy +0.1 pct
 HISTORICAL/NOTES:
 U.S. OCT CORE PPI EX-CARS, LIGHT TRUCKS +0.2
 U.S. finished consumer foods +2.2 pct, biggest
increase since +2.4 pct in Jan 1984

[Starwind]

The full BLS reprot is at Producer Price Indexes -- October 2003

[Starwind]

Fyi...

[krb]

Someone explain to me what the implications of this are.

[arete]

Just close your eyes and keep repeating -- "There is no inflation" and "The economic recovery miracle is on track."

Richard W.

[RiflemanSharpe]

Prices go up, wages stay the same, and the middle class get squeezed a little more. The free traitors smile.

[Huck]

My salary has not stayed the same.

[RiflemanSharpe]

My salary has not stayed the same.

Mine has and so have a half dozen people I know.

[Huck]

Mine has and so have a half dozen people I know.

Well, then it must be the government's fault.

[RiflemanSharpe]

Mine has and so have a half dozen people I know.
Well, then it must be the government's fault.


It is the fault of the government for opening our markets to free trade and not requiring the exact same access to the markets of other countries see India and China.

[Huck]

It is the fault of the government for opening our markets to free trade and not requiring the exact same access to the markets of other countries see India and China.

So it's the government's fault you aren't making more money lately.

[Koblenz]

So you're saying that because the US opened its markets up, prices went up? If the US had closed its markets, prices would have gone up a lot more. The imported goods keep prices down, because they can be made cheaper overseas (if they couldn't be made cheaper, then why bother to import?). Now, in some situations, this has also kept wages down. But prices too.

[ladtx]

My salary has not stayed the same.

Same here. Matter of fact we're getting another payout on our incentive pay plan this year.

[RiflemanSharpe]

So you're saying that because the US opened its markets up, prices went up? If the US had closed its markets, prices would have gone up a lot more. The imported goods keep prices down, because they can be made cheaper overseas (if they couldn't be made cheaper, then why bother to import?). Now, in some situations, this has also kept wages down. But prices too.

If paying lower wages produces low cost product then where are my $10 pair of Reeboks? They are after all only paying about a dollar a day to the Chicom slave labor.

[PISANO]

Well, then it must be the government's fault

To be specific it is GW's fault as was the electrical storm, the hail storm, the power outage, 911, unemployment, the recession and the absolute outrage of freeing 52 million middle easterners.... etc etc etc. < /sarcasm >

[Koblenz]

Believe me, if we closed our borders to consumer products, prices would skyrocket. Walmart alone is a huge bulwark against inflation, by forcing suppliers to supply at the lowest cost possible. As far as your $10 Reeboks go, there's still design, manufacturing, transportation, advertising and promotion, distribution, etc. And Reeboks are a brand name, which people pay a premium for. Look for generics, which don't have an advertising budget, at Walmart or another discount store. There's no way those prices would be so cheap without imports.

[RiflemanSharpe]

It is the fault of the government for opening our markets to free trade and not requiring the exact same access to the markets of other countries see India and China.
So it's the government's fault you aren't making more money lately.


It is not directly the governemnts fault, but this country like all others on this planet the government has a great deal of say in the economy. What I am trying to say is that the current trade policy of the US opens our markets to the imports from coutries that do not open theirs. And this is hurting manufactoring anf the middle class. It is lowering wages and hurting future opportunities. I believe that in order to have long term and robust growth in the economy we must have as large of a middle class as possible. Manufactoring job traditionally have been the first rungs on the ladder to the middle class. I do not want to see this country to become like Mexico. A small group of rich, a small highly taxed middle class, and a large section of the population poor. Beside national security demands thart we have the manufactoring capacity to produce what we need in case of world instablity.

[1rudeboy]

If paying lower wages produces low cost product then where are my $10 pair of Reeboks?

If imposing tariffs protects high-paying jobs, where's my $60,000?

[RiflemanSharpe]

I am not asking to close the borders. What I want is that the US have to same access to the market in other countries as we give to ours. The American worker can be quite competitive with any other country on a level palying field. I think that it is the job of the US governemnt to level and keep level the playing field.

[RiflemanSharpe]

If paying lower wages produces low cost product then where are my $10 pair of Reeboks?
If imposing tariffs protects high-paying jobs, where's my $60,000?


We need fair free trade with other countries. Trade where both sides have equal access to the markets of the other. And if the only way to counter act trade barriers of say China and India is tariffs then so be it.

[1rudeboy]

And what does your idea of fair trade have to do with the producer price index?