July 2013 Consumer and Producer Price Indices (incl. Forest Products)

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The seasonally adjusted Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in July. Over the last 12 months, the all items index increased 2.0 percent before seasonal adjustment. The rise in the seasonally adjusted all items index was the result of increases in a broad array of indexes including shelter, gasoline, apparel, and food. Despite the gasoline increase, the energy index rose only 0.2 percent as the natural gas and electricity indexes declined. The increase in the food index was caused by a sharp rise in the fruits and vegetables index; other food indexes were mixed.

The seasonally adjusted Producer Price Index for finished goods (PPI) was unchanged in July after an 0.8 percent increase in June. At the earlier stages of processing, prices received by manufacturers of intermediate goods also were unchanged in July, and the crude goods index rose 1.2 percent. On an unadjusted basis, prices for finished goods advanced 2.1 percent for the 12 months ended July 2013. 

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Lumber prices declined in July, whereas the Wood Fiber and Pulp, Paper & Allied Products indices achieved new highs. All of the indices are higher than year-earlier levels, however. 

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The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purpose of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.