BLS DAILY REPORT, MONDAY, SEPTEMBER 13, 1999
__Finished producer prices rose 0.5 percent in August, boosted by a hefty
3.7 percent rise in energy costs from July, BLS reported. The overall
producer price index for finished goods rose 0.2 percent in July and 0.1
percent in June. Over the 12-month period ended in August, the PPI rose an
unadjusted 2.3 percent--mostly due to a 10.9 percent rise in the finished
goods index. Prices for finished goods excluding food and energy prices --
the "core" index -- actually fell 0.1 percent in August, however, after
posting no change in July. One question contemplated by analysts is how
long consumer inflation will remain isolated from such dramatic gains in
energy prices. ... (Daily Labor Report, page D-1).
__A closely watched measurement of prices paid to producers fell, which
analysts took as a sign that inflation remains tame. Overall, the PPI for
finished goods other than food and energy fell 0.1 percent, for a
year-over-year increase of just 1.3 percent, which economists said was
benign. Economists and investors focused on this core PPI rather than the
overall PPI, largely because of sharp spikes in the prices of gasoline,
pork, soft drinks, and other food and energy items. ... (George Hager in
Washington Post, Sept. 11, page E1).
__The wholesale cost of food for the table and gasoline for the car rose,
but almost everything else was cheaper. ... (Tristan Mabry in Wall Street
Journal, page A2).
__In the 1970s, a sudden jump in the price of energy or some other important
commodity inevitably signaled a nasty chain reaction that would send
inflationary ripples through the whole economy. These days, the prices of
oil and other raw materials are climbing once again. But, so far, there are
few signs of a ripple effect. ... (Sylvia Nasar in New York Times, Sept.
11, page B4).
Martin N. Baily, the chairman of the President's Council of Economic
Advisers, said that it is too soon to conclude that the recent upswing in
productivity is permanent. ... Although government data show productivity
-- that is, output per hour -- was up a sizzling 2.8 percent over the last
12 months, the new CEA chief asserted that the administration would have to
see more data before it is convinced that this "trend" productivity rate has
permanently moved beyond the 1.3 percent average of the last few decades.
... (Daily Labor Report, page A-2).
DUE OUT TOMORROW: 1999 Report on the American Workforce Released
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