October 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) decreased 0.1 percent in October. Over the last 12 months, the all items index increased 1.0 percent before seasonal adjustment. The all items index increased 1.0 percent over the last 12 months; this was the smallest 12-month increase since October 2009. The energy index has declined 4.8 percent over the last 12 months, its largest 12-month decline since July 2012. The index for all items less food and energy has risen 1.7 percent over the last year, while the food index has risen 1.3 percent.

The seasonally adjusted Producer Price Index for finished goods (PPI) declined 0.2 percent in October. Prices for finished goods fell 0.1 percent in September and rose 0.3 percent in August. At the earlier stages of processing, prices received by producers of intermediate goods declined 0.4 percent, and the crude goods index decreased 0.9 percent. On an unadjusted basis, prices for finished goods advanced 0.3 percent for the 12 months ended October 2013.

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Of the price indices we track, only one (Intermediate Materials) declined in October relative to the previous month and year. 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.