Economic and jobs news thread

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Wholesale inflation rose 0.5% in September, more than expected

KEY POINTS
* The producer price index increased 0.5% for September, against the Dow Jones estimate for a 0.3% rise.
* Excluding food and energy, core PPI was up 0.3%, versus the forecast for 0.2%.
* Inflation pressures came primarily from final demand goods, which surged 0.9% on the month, while services increased 0.3%.

A measure of wholesale prices rose more than expected in September, indicating simmering inflation pressures for the U.S. economy. ... The producer price index, which measures costs for finished goods that producers pay, increased 0.5% for the month, against the Dow Jones estimate for a 0.3% rise, the Labor Department reported Wednesday. That was less than the 0.7% increase in August.

Excluding food and energy, the core PPI was up 0.3%, versus the forecast for 0.2%. Excluding food, energy and trade services, the index rose 0.2%, in line with the estimate. ... Markets showed only a mild reaction to the PPI release, with stock futures off slightly and Treasury yields off their lows though still negative on most longer-duration issues.

Inflation pressures came primarily from final demand goods, which surged 0.9% on the month, while services increased 0.3%. Much of the goods prices increase came from gasoline, which jumped 5.4%. ... On the services side, prices for final demand services less trade, transportation and warehousing rose 0.3%, while final demand trade services costs increased 0.5%. Also in the services category, the costs for deposit services at commercial banks surged 13.9%.

On a year-over-year basis, the headline PPI increased 2.2%, the largest move since April. The 12-month pace had slowed to as low as 0.2% in June but has been on the rise since. ... Markets look at the PPI as a leading indicator for inflation, as it gauges a wide variety of costs for pipeline goods that feed to consumer products. On Thursday, the Labor Department will release its more closely watched consumer price index, which is expected to show a slight easing in the pace of inflation.

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Read more: https://www.cnbc.com/2023/10/11/ppi-september2023-.html

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Consumer prices rose 0.4% in September, more than expected
Source: CNBC

Published Thu, Oct 12 20238:31 AM EDTUpdated 4 Min Ago

Prices that consumers pay for a wide variety of goods and services increased at a slightly faster-than-expected pace in September, keeping inflation in the spotlight for policymakers. The consumer price index, a closely followed inflation gauge, increased 0.4% on the month and 3.7% from a year ago, according to a Labor Department report Thursday. That compared with respective Dow Jones estimates of 0.3% and 3.6%.

Excluding volatile food and energy prices, the so-called core CPI increased 0.3% on the month and 4.1% on a 12-month basis, both exactly in line with expectations. Policymakers place more weight on the core numbers as they tend to be better predictors of long-term trends.

In keeping with recent trends, shelter costs were the main factor in the inflation increase. The index for shelter, which makes up about one-third of the CPI weighting, accelerated 0.6% for the month and 7.2% from a year ago. On a monthly basis, shelter accounted for more than half the rise in the CPI, the Labor Department said.

Energy costs rose 1.5%, including a 2.1% pickup in gasoline prices and 8.5% in fuel oil, and food was up 0.2% for the third month in a row. On a 12-month basis, food costs climbed 3.7%, including a 6% increase for food away from home, while energy costs were off 0.5%.

Read more: https://www.cnbc.com/2023/10/12/cpi-september-2023.html

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California Gov. Newsom signs law to slowly raise health care workers' minimum wage to $25 per hour
Source: AP

By ADAM BEAM
Updated 10:22 PM CDT, October 13, 2023

SACRAMENTO, Calif. (AP) — California will raise the minimum wage for health care workers to $25 per hour over the next decade under a new law Democratic Gov. Gavin Newsom signed Friday.

The new law is the second minimum wage increase Newsom has signed. Last month, he signed a law raising the minimum wage for fast food workers to $20 per hour.

Both wage increases are the result of years of lobbying by labor unions, which have significant sway in the state’s Democratic-dominated Legislature.

“Californians saw the courage and commitment of healthcare workers during the pandemic, and now that same fearlessness and commitment to patients is responsible for a historic investment in the workers who make our healthcare system strong and accessible to all,” said Tia Orr, executive director of the Service Employees International Union California.

Read more: https://apnews.com/article/california-h ... bc7ef9b452

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Retail sales rose 0.7% in September, much stronger than estimate
Source: CNBC

Published Tue, Oct 17 2023 8:32 AM EDT Updated 3 Min Ago

Consumers showed surprising strength in September, boosting retail sales well above expectations despite high interest rates and worries over a weakening economy.

Retail sales rose 0.7% on the month, well above the 0.3% Dow Jones estimate, according to the advance report the Commerce Department released Tuesday. Gas station sales helped propel the headline number, rising 0.9% as prices at the pump accelerated.

Excluding autos, sales were up 0.6%, also well ahead of the forecast for just 0.2%. The so-called control group, which strips out items such as auto dealers, gas stations, office supply stores, mobile homes and tobacco stores and is used for the department’s GDP calculation, rose 0.6% as well.

The numbers are not adjusted for inflation, so they indicate that consumers more than kept up with price increases. The consumer price index, released last week, showed headline inflation up 0.4% in September. On a year-over-basis, sales rose 3.8%, compared to the 3.7% increase for CPI.

Read more: https://www.cnbc.com/2023/10/17/retail- ... 2023-.html

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