December 2010 Consumer and Producer Price Indices

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The seasonally adjusted Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5 percent in December on a seasonally adjusted basis. Over the last 12 months, the all items index increased 1.5 percent.

The energy index increased in December. The gasoline index rose sharply and accounted for about 80 percent of the all items seasonally adjusted increase. The household energy index, which declined in November, increased as well. The food index increased slightly in December, with the fruits and vegetables index rising notably.

The index for all items less food and energy also rose in December. An increase in the shelter index accounted for about 60 percent of the rise, and the indexes for airline fares, medical care and apparel rose as well. These increases more than offset declines in the indexes for communication, recreation, and household furnishings and operations.

The seasonally adjusted Producer Price Index for Finished Goods (PPI) rose 1.1 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This advance followed increases of 0.8 percent in November and 0.4 percent in October and marks the sixth straight rise in finished goods prices. At the earlier stages of processing, prices received by manufacturers of intermediate goods moved up 1.0 percent, and the crude goods index increased 4.0 percent. On an unadjusted basis, prices for finished goods advanced 4.0 percent in 2010 after climbing 4.3 percent in 2009.
 

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Details at different stages of processing include:

Finished goods -- About three-fourths of the December rise in the finished goods index can be traced to prices for energy goods, which increased 3.7 percent. Also contributing to the broad-based advance in the finished goods index, prices for consumer foods and for goods other than foods and energy moved up 0.8 percent and 0.2 percent, respectively.

Intermediate goods -- This index moved up 1.0 percent in December, its fifth consecutive monthly advance. Accounting for about two-thirds of the broad-based December increase, prices for intermediate energy goods rose 3.1 percent. The indexes for both intermediate materials less foods and energy and for intermediate foods and feeds also contributed to this advance, rising 0.4 percent and 0.6 percent, respectively. In 2010, prices for intermediate goods climbed 6.5 percent after increasing 2.9 percent in 2009.

Crude goods -- The crude-goods index increased 4.0 percent in December. For the three months ended in December, crude goods prices advanced 9.0 percent. Accounting for about 70 percent of the December monthly increase, the index for crude energy materials climbed 7.7 percent. Also contributing to this broad-based advance, prices for crude nonfood materials less energy and for crude foodstuffs and feedstuffs moved up 3.1 percent and 1.1 percent, respectively.
 

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In the case of forest products sector, the indices we track are either stable or moving higher. Except for pulpwood, prices are all higher than year-earlier levels although the rate of growth has slowed in several cases.
 

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