April 2014 Consumer and Producer Price Indices (incl. Forest Products)

Click image for larger version

The seasonally adjusted Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3 percent in April. Over the last 12 months, the all items index increased 2.0 percent before seasonal adjustment. The indexes for gasoline, shelter, and food all rose in April and contributed to the seasonally adjusted all items increase. The gasoline index rose 2.3 percent; this led to the first increase in the energy index since January, despite declines in the electricity and fuel oil indexes. The food index rose 0.4 percent for the third month in a row, as the index for meats rose sharply.

The index for all items less food and energy rose 0.2 percent in April, with most of its major components posting increases, including shelter, medical care, airline fares, new vehicles, used cars and trucks, and recreation.

The all items index increased 2.0 percent over the last 12 months, the largest 12-month increase since July. The index for all items less food and energy has increased 1.8 percent over the last 12 months. The energy index has risen 3.3 percent, and the food index has advanced 1.9 percent over that time frame.

The seasonally adjusted Producer Price Index for final demand advanced 0.6 percent in April. On an unadjusted basis, the index for final demand moved up 2.1 percent for the 12 months ended in April, the largest 12-month advance since a 2.4 percent increase in March 2012.

In April, the 0.6 percent increase in final demand prices can be traced to the indexes for final demand services and final demand goods, both of which also advanced 0.6 percent. Within intermediate demand, the index for processed goods was unchanged; prices for unprocessed goods climbed 0.4 percent, and the index for services inched up 0.1 percent.

Click image for larger version

The price indices we track were mixed relative to March. Compared to a year earlier, all indices were higher except for Softwood Lumber. 

Click image for larger version

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.