Economy

US Wholesale Inflation Falls Short of Projections

The producer-price index, a measure of inflation experienced by businesses, rose 0.2% in August from a month earlier, the Labor Department said Wednesday.

But despite reversing the drop seen in July, the Producer Price Index still fell short of analyst expectations. The price of fuel could remain elevated for awhile after all the damage caused to refining operations in the Houston area after Hurricane Harvey.

But even so, weak United States inflation has stumped monetary policymakers and economists this year.

Inflation is being closely watched for clues on the timing of the next interest rate increase from the Federal Reserve. Economists surveyed by MarketWatch had forecast a 0.3% increase in wholesale inflation after a small decline in July. It was the largest monthly increase since a 0.5 per cent gain in April. But inflation-as measured at the consumer level-has undershot the central bank's projections this year.

The increase in producer prices was partly due to a jump in energy prices, which surged up by 3.3% in August after falling by 0.3% in the previous month.

Within energy, there was a double-digit monthly increases in residual fuels, home heating oil, and jet fuel, which rose 18.6 per cent, its fastest pace in eight years.

US inflation at the wholesale level rebounded toward the end of summer, but most of the increase reflected higher gasoline prices.

A almost 10% jump in the cost of gas accounted for most of the increase in wholesale inflation last month.

Air transportation services rose 1.4 per cent, the biggest increase since July 2009, while truck hauling services moved up 0.9 per cent, the largest increase in three years. Core prices had been expected to rise by 0.2%.



Like this

loading...
loading...

Latest


13 September 2017
Investment Research Analysts Opinion: BRF SA (BRFS), Graphic Packaging Holding Company (GPK)
The sales growth rate for a stock is a measure of how the stock's sales per share (SPS) has grown over a specific period of time. It worsened, as 53 investors sold MS shares while 267 reduced holdings. 132 funds opened positions while 236 raised stakes.

13 September 2017
Calamos Advisors LLC Has $20.25 Million Holdings in FleetCor Technologies, Inc. (FLT)
Blackhill Capital Inc decreased Philip Morris Intl Inc Com (NYSE:PM) stake by 4,220 shares to 103,004 valued at $9.42M in 2016Q4. Liberty Global plc - Class A Ordinary Shares (NASDAQ:LBTYA) has declined 3.90% since September 4, 2016 and is downtrending.

13 September 2017
Budget for body probing Duterte drugs war slashed to just $25
Human rights monitors said the CHR was a vital institution that stands no chance of doing its job without a proper budget. "Mr. Congressman Edcel Lagman said 32 minority lawmakers opposed the measure during the debate at the second reading.

13 September 2017
Raveena Tandon VS Anil Kapoor In The Battle For The Hairiest Chest
Raveena and Anil have worked together in several films, including Laadla, Gharwali Baharwali and Bulandi , among others. The director-choreographer shared pictures from the sets and one of them is just hilarious.

13 September 2017
2 in USA TODAY NFL power rankings
The Patriots got slapped on Thursday night by the Chiefs, losing 42-27 and showed a real weakness against the run on defense. Astonishingly, Dallas didn't allow Eli Manning and the Giants to cross their own 35-yard line until the second half.

13 September 2017
Ex-President Saakashvili pledges to tour Ukraine
Kiev is "panicking", Saakashvili said, adding that he did "not want to overthrow President Poroshenko" but just defend his rights. Surrounded by supporters, Saakashvili broke through a cordon of Ukrainian border guards at the Ukraine-Poland border Sunday.

13 September 2017
Pradhan backs daily price revision, favours bringing petrol, diesel under GST
Diesel is being retailed at Rs. 58.72 per litre, Rs. 61.37 per litre, Rs. 62.37 per litre and Rs. 61.84 per litre respectively. The daily price revision means an instant transfer of a rise or decline in worldwide oil price to the consumer.

13 September 2017
Vantiv, Inc. Class A (NYSE:VNTV) Experiences Heavier than Usual Trading Volume
August 11 investment analysts at Citigroup left the stock rating at "Buy" and raised the price expectation from $46.50 to $74.00. The business services provider reported $0.83 EPS for the quarter, topping analysts' consensus estimates of $0.82 by $0.01.

13 September 2017
After US Compromise, Security Council Strengthens North Korea Sanctions
Nor does the resolution impose a travel ban or asset freeze on Kim, as the original US draft had set out. Besides, the UN Security Council has also capped crude oil and refined petroleum products deliveries.

13 September 2017
Summit Midstream Partners, LP (NYSE:SMLP) Updated Broker Ratings
Analysts forecast that Magellan Midstream Partners L.P. will post $3.91 earnings per share for the current fiscal year. Sequoia Financial Advisors LLC raised its position in Magellan Midstream Partners L.P.by 352.8% in the second quarter.