Consumer and Producer Price Indexes
The Consumer Price Index (CPI) declined 0.3 percent in October after increasing 0.4 percent in September on a seasonally adjusted basis, according to the U.S Department of Labor’s Bureau of Labor Statistics.
The index for apparel advanced 0.6 percent in October, the same as in September. (Prior to seasonal adjustment, apparel prices rose 2.1 percent, reflecting the continued introduction of higher-priced Fall/Winter wear.)
The CPI measures the average change in prices over time in a market basket of goods and services.
The Producer Price Index (PPI), which measures the average change over time in the selling prices received by domestic producers for their output, declined in September. But Audrey L. Watson, economist for the Bureau of Labor Statistics, reported that while the PPI decreased in September, the data was processed prior to Sept. 11, so it clearly was not a reaction to that day’s events. She also said that a measurable reaction might not appear for a little while.
“The reaction [to Sept. 11] would be [detectable] by the next month or two,” said Watson. “We did see a big drop of 1.6 percent for all finished goods, but apparel was less than 1 percent. It depends on the pressure for a particular industry and how quick they react. A lot of the pressure comes from foreign competition.” —Darryl James
