February 2014 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 0.1 percent in February. Over the last 12 months, the all items index increased 1.1 percent before seasonal adjustment. An increase in the food index accounted for more than half of the all-items increase in February. The food index rose 0.4 percent in February, driven by a 0.5 percent increase in the index for food at home, with four of the six major grocery store food group indexes increasing. The energy index declined, with a decrease in the gasoline index more than offsetting sharp increases in the fuel oil and natural gas indexes. 

The seasonally adjusted Producer Price Index for final demand fell 0.1 percent in February. This decline followed advances of 0.2 percent in January and 0.1 percent in December. The index for final demand moved up 0.9 percent for the 12 months ended in February, the smallest 12-month rise since a 0.9 percent increase in May 2013. In February, the 0.1 percent decrease in final demand prices can be traced to the index for final demand services, which fell 0.3 percent. In contrast, prices for final demand goods advanced 0.4 percent. As the graph above indicates, the newly revamped PPI extends back only to November 2009. 

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All of the price indices we track increased relative to January. Compared to a year earlier, all indices were either unchanged or higher. The indices of Lumber & Wood Products, and Wood Fiber 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.