September 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 September. Over the last 12 months, the all-items index increased 1.2 percent -- the smallest annual increase since April. The energy index rose 0.8 percent in September and accounted for about half of the seasonally adjusted all-items increase. All the major energy component indexes rose in September. The food index was unchanged, with declines in the indexes for fruits and vegetables and for nonalcoholic beverages offsetting increases in other indexes.

The seasonally adjusted Producer Price Index for finished goods (PPI) fell 0.1 percent in September. Prices for finished goods rose 0.3 percent in August and were unchanged in July. At the earlier stages of processing, prices received by producers of intermediate goods advanced 0.1 percent, and the crude goods index increased 0.5 percent. On an unadjusted basis, prices for finished goods moved up 0.3 percent for the 12 months ended September 2013, the lowest 12-month change since a 2.0 percent decline in October 2009. 

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All of the price indices we track either were unchanged or rose (especially Softwood Lumber) in September. Wood Fiber and Pulp, Paper & Allied Products once again achieved new all-time highs. 

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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.