A worker assembles soccer balls at the Wilson Sporting Goods facility in Ada, Ohio on Thursday, September 3, 2020.
Maddie McGarvey | Bloomberg | Getty Images
Producer prices in the United States rose more than expected in September amid skyrocketing hotel and motel costs, leading to the first year-over-year increase since March.
Wednesday’s Department of Labor report, which also showed higher prices for scrap iron and steel, suggested that a slowdown in inflation signaled by Tuesday’s data would likely be moderate. Consumer prices slowed in September as supply chain disruptions caused by the COVID-19 pandemic abated.
The producer price index for final demand rose 0.4% last month after advancing 0.3% in August. In the 12 months to September, the PPI rose 0.4% after falling 0.2% in August.
Economists polled by Reuters had forecast the PPI to gain 0.2% in September and rebound 0.2% on an annual basis.
Excluding the volatile components of food, energy and commercial services, producer prices rose 0.4% in September. The so-called core PPI had risen 0.3% for three consecutive months. In the 12 months to September, the core PPI climbed 0.7%. Core PPI rose 0.3% year on year in August.
US stock index futures were trading slightly higher. The dollar slipped against a basket of currencies. The prices of the US Treasury were mostly higher.
The government said on Tuesday that consumer prices rose 0.2% in September, with a 6.7% rise in prices for used cars and trucks accounting for most of the increase.
Business closures to slow the spread of the coronavirus have created bottlenecks in the supply chain, pushing up prices for some products. Many businesses are now operational, but excess capacity in the labor market limits their ability to raise prices.
Tame inflation should allow the Federal Reserve to keep interest rates close to zero for a while and continue to pump money into the economy, which entered recession in February.
The US central bank is now focusing more on the labor market and has adopted flexible targeting of average inflation, which in theory could allow policymakers to tolerate price increases above the 2% target. Fed for a period of perhaps several years to compensate for the years in which inflation was introduced. below this target.
The Fed’s preferred measure of inflation, the Personal Consumption Expenditure Price Index (PCE), rose 1.6% in the 12 months of August. The core data for the PCE price index for September is expected to be released at the end of this month.
With the spike in new coronavirus infections in the United States and the economic recovery showing signs of stress, inflation could remain lukewarm. At least 25.5 million people receive unemployment benefits.
In September, services rose 0.4% after increasing 0.5% in August. A 3.9% jump in hotel and motel accommodation was a major driver of the rise in prices for services last month. There have also been increases in the costs of equipment, building materials and supplies, transportation and hospital care.
Whole food prices rebounded 1.2% after three consecutive monthly declines. Wholesale gasoline prices fell 2.8%. Goods prices accelerated 0.4% after edging up 0.1%. The prices of goods were driven by a 14.7% surge in prices for scrap iron and steel.
Excluding food and energy, goods prices rose 0.4% after rising 0.3% in August. The dollar has fallen 2.8% against the currencies of the United States’ major trading partners since July.
This story is developing. Please come back for updates.
What Are The Main Benefits Of Comparing Car Insurance Quotes Online
LOS ANGELES, CA / ACCESSWIRE / June 24, 2020, / Compare-autoinsurance.Org has launched a new blog post that presents the main benefits of comparing multiple car insurance quotes. For more info and free online quotes, please visit https://compare-autoinsurance.Org/the-advantages-of-comparing-prices-with-car-insurance-quotes-online/ The modern society has numerous technological advantages. One important advantage is the speed at which information is sent and received. With the help of the internet, the shopping habits of many persons have drastically changed. The car insurance industry hasn't remained untouched by these changes. On the internet, drivers can compare insurance prices and find out which sellers have the best offers. View photos The advantages of comparing online car insurance quotes are the following: Online quotes can be obtained from anywhere and at any time. Unlike physical insurance agencies, websites don't have a specific schedule and they are available at any time. Drivers that have busy working schedules, can compare quotes from anywhere and at any time, even at midnight. Multiple choices. Almost all insurance providers, no matter if they are well-known brands or just local insurers, have an online presence. Online quotes will allow policyholders the chance to discover multiple insurance companies and check their prices. Drivers are no longer required to get quotes from just a few known insurance companies. Also, local and regional insurers can provide lower insurance rates for the same services. Accurate insurance estimates. Online quotes can only be accurate if the customers provide accurate and real info about their car models and driving history. Lying about past driving incidents can make the price estimates to be lower, but when dealing with an insurance company lying to them is useless. Usually, insurance companies will do research about a potential customer before granting him coverage. Online quotes can be sorted easily. Although drivers are recommended to not choose a policy just based on its price, drivers can easily sort quotes by insurance price. Using brokerage websites will allow drivers to get quotes from multiple insurers, thus making the comparison faster and easier. For additional info, money-saving tips, and free car insurance quotes, visit https://compare-autoinsurance.Org/ Compare-autoinsurance.Org is an online provider of life, home, health, and auto insurance quotes. This website is unique because it does not simply stick to one kind of insurance provider, but brings the clients the best deals from many different online insurance carriers. In this way, clients have access to offers from multiple carriers all in one place: this website. On this site, customers have access to quotes for insurance plans from various agencies, such as local or nationwide agencies, brand names insurance companies, etc. "Online quotes can easily help drivers obtain better car insurance deals. All they have to do is to complete an online form with accurate and real info, then compare prices", said Russell Rabichev, Marketing Director of Internet Marketing Company. CONTACT: Company Name: Internet Marketing CompanyPerson for contact Name: Gurgu CPhone Number: (818) 359-3898Email: [email protected]: https://compare-autoinsurance.Org/ SOURCE: Compare-autoinsurance.Org View source version on accesswire.Com:https://www.Accesswire.Com/595055/What-Are-The-Main-Benefits-Of-Comparing-Car-Insurance-Quotes-Online View photos
to request, modification Contact us at Here or [email protected]