U.S. producer prices rose more than expected in September to record their largest increase in five months as gasoline prices surged, a government report showed on Tuesday. The Producer Price Index for finished goods rose 0.8 percent in September, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Finished goods prices were unchanged in August and increased 0.2 percent in July. At the earlier stages of processing, prices received by manufacturers of intermediate goods moved up 0.6 percent in September, and the crude goods index advanced 2.8 percent. On an unadjusted basis, prices for finished goods climbed 6.9 percent for the 12 months ended September 2011.
In September, the increase in the index for finished goods was broad based, with prices for finished energy goods rising 2.3 percent, the index for finished goods less foods and energy moving up 0.2 percent, and prices for finished consumer foods advancing 0.6 percent. Finished energy: The index for finished energy goods advanced 2.3 percent in September after decreasing in each of the previous three months. Nearly seventy percent of this rise can be attributed to the gasoline index, which increased 4.2 percent. Higher prices for liquefied petroleum gas and diesel fuel also were factors in the rise in the finished energy goods index. The index for finished goods less foods and energy moved up 0.2 percent in September, the tenth straight increase. In September, one-third of the advance can be traced to prices for light motor trucks, which rose 0.6 percent. Higher prices for household detergents also contributed to the increase in the finished core index.
Prices for finished consumer foods climbed 0.6 percent in September, the fourth consecutive monthly increase. Accounting for over eighty percent of the September advance, prices for fresh and dry vegetables increased 10.0 percent. The Producer Price Index for intermediate materials, supplies, and components climbed 0.6 percent in September after falling 0.5 percent in August. Over two-thirds of this broad-based advance can be traced to prices for intermediate energy goods, which rose 1.7 percent in September. The indexes for intermediate goods less foods and energy and for intermediate foods and feeds also contributed to the increase in intermediate goods prices, moving up 0.2 percent and 0.9 percent, respectively. For the 12 months ending September 2011, the intermediate goods index jumped 10.5 percent.
Prices for intermediate energy goods increased 1.7 percent in September following a 2.3-percent drop in August. A major factor in this rise was the index for diesel fuel, which rose 7.3 percent. Higher prices for gasoline and liquefied petroleum gas also were significant contributors in the advance in the intermediate energy goods index.
Intermediate core: The index for intermediate goods less foods and energy moved up 0.2 percent in September after edging down 0.1 percent in August. Leading this increase, prices for primary basic organic chemicals rose 2.4 percent in September. An advance in the index for plastic resins and materials also contributed to higher intermediate core prices.
Intermediate foods: The index for intermediate foods and feeds climbed 0.9 percent in September, the fourth straight advance. A 3.2-percent increase in prices for prepared animal feeds accounted for over eighty percent of the September rise in the intermediate foods index.
The Producer Price Index for crude materials for further processing moved up 2.8 percent in September. For the 3-month period ending in September, prices for crude materials advanced 1.8 percent following a 1.1-percent decrease from March to June. In September, the monthly increase in the crude goods index is mostly attributable to prices for crude energy materials, which jumped 7.7 percent. Also contributing to the September climb was the index for crude nonfood materials less energy, which advanced 1.0 percent. By contrast, prices for crude foodstuffs and feedstuffs moved down 0.9 percent.