> RELEASED TODAY: The Consumer Price Index for All Urban Consumers (CPI-U)
> increased 0.1 percent in August, before seasonal adjustment, to a level of
> 172.7 (1982-84=100), BLS reported. For the 12-month period ended in
> August, the CPI-U increased 3.4 percent. The Consumer Price Index for
> Urban Wage Earners and Clerical Workers (CPI-W) declined 0.1 percent in
> August, prior to seasonal adjustment. The August level of 169.2 was 3.3
> percent higher than the index in August 1999.
>
> RELEASED TODAY: Real average weekly earnings increased by 0.1 percent
> between July and August after seasonal adjustment, according to
> preliminary data released today by BLS. This was due to a 0.3 percent rise
> in average hourly earnings and a 0.1 percent decline in the Consumer Price
> Index for Urban Wage Earners and Clerical Workers (CPI-W). These movements
> were partially offset by a 0.3 percent decline in average weekly hours.
>
> Falling food and energy costs unexpectedly shaved producer prices in
> August, the first decline in four months, BLS reported Sept. 14.
> Seasonally adjusted data culled by BLS showed that the producer price
> index (PPI) for finished goods dropped 0.2 percent in August after holding
> steady in July. Producer prices were weighed down by a 0.7 percent slump
> in food prices and a 0.2 percent decline in energy prices. The core PPI,
> which excludes volatile food and energy prices, edged ahead 0.1 percent
> for the second month in a row. (Daily Labor Report, page D-4).
>
> Producer prices fell unexpectedly and retail sales cooled in August, the
> government reported today, indicating that the economy, in a record 10th
> year of expansion, is growing at a pace that is unlikely to ignite
> inflation. "It's just about a picture-perfect economy--impressive economic
> growth with very little inflationary pressure," said Richard Yamarone, a
> senoir economist at the Argus Research Corporation in New York. (New York
> Times, page C4).
>
> Consumers increased their spending only slightly last month, while
> producer prices fell, the government reported yesterday, providing
> analysts with further signs of moderate economic growth and subdued
> inflation. The Commerce Department said retail sales rose just 0.2 percent
> in August, while the Labor Department said its producer price index dipped
> 0.2 percent in the same month. (Washington Post, page E2).
>
> OPEC President Rodriguez said oil prices could temporarily soar to $40 a
> barrel this winter as a result of lagging refinery capacity and other
> factors. Rodriguez said world oil prices could also be pushed higher
> because refining capacity has lagged. He said taxes levied by consuming
> countries also contribute to higher prices, as does speculative buying.
> "If oil reaches $40 a barrel, it would only be temporary," Rodriguez said
> at a seminar. (Washington Post, page E3).
>
> Slack automobile and gasoline sales took some of the punch out of consumer
> spending in August, holding overall retail sales to a weaker-than-expected
> 0.2 percent gain during the month, the Commerce Department reported Sept.
> 14. Data released by the department's Census Bureau showed that retail
> sales edged ahead to a seasonally adjusted $271.2 billion in August, up
> just 0.2 percent from the $270.8 billion tally posted a month earlier. The
> increase trailed an upwardly revised 0.9 percent spending surge in July.
> Analysts had expected consumer spending--which accounts for two-thirds of
> U.S. economic output--to rise 0.4 percent in August. (Daily Labor Report,
> page D-13).
>
> More figures show a slowing economy. Back-to-school shoppers took it easy
> in August, according to fresh data that support the view of a slowing
> economy and tame inflation. Retail sales were slower than expected last
> month while wholesale prices fell. New claims for unemployment benefits
> edged higher last week. Together, the three latest reports back up the
> notion that the economy is headed for the much-heralded "soft-landing" of
> sustainable growth and low inflation. (Wall Street Journal, page A2).
>
> Persistent worker shortages and higher inflation expectations are among
> the key factors that will keep pressures on private sector employers to
> boost wages through at least the middle of next year, according to revised
> figures from the BNA's Wage Trend Indicator. Job growth has slowed in the
> last couple of months, and both government and private surveys show a
> slight easing of labor demand. Even with these developments, the WTI
> projects continued wage pressures as employers "step up to the plate to
> give workers raises, in part to keep up with recent higher union
> settlements," says economist Joel Popkin, whose firm developed the Wage
> Trend Indicator for BNA. (Daily Labor Report, page D-1).
>
> New claims filed with state agencies for unemployment insurance benefits
> increased by 13,000 to a total of 324,000 during the week ended Sept. 9,
> according to a report released Sept. 14 by the Labor Department's
> Employment and Training Administration. The increase was consistent with
> recent UI claims filings, which generally have edged slightly upward in
> recent weeks. (Daily Labor Report, page D-16).
>
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