Wholesale Prices Reveal No Signs of Inflation
by Christina Lee on June 16th, 2009
Wholesale prices rose just by 0.2 percent last month, following a 0.3 percent increase in April and a 1.2 percent decrease in March.
Economists made predictions ranging from zero change to a 2.3 percent gain, according to Bloomberg. And while they had initially feared any sign of inflation, actual prices suggest that they now have no need to worry.
“There’s no story on inflation here, and deflation doesn’t seem to be a concern,” said Anika Khan, Wachovia economist, to CNN.
Most of the major increases and decreases since last month occur in food and energy prices, according to the Bureau of Labor Statistics. Otherwise, other wholesale prices remain essentially the same.
Prices for apparel and other fabricated textiles, in addition to non-wood commercial furniture, turned up incrementally after falling down in April. On the other hand, prices for perfume and cologne decreased after observing slight increases.
In comparison to last year, wholesale prices for finished goods are down by 5 percent – though much of this decrease is due to cuts in food prices. However, excluding food and energy, prices have actually risen by 3 percent, according to the Bureau of Labor Statistics.
Such behavior is a stark contrast from the 9.8 percent year-over-year increase in July 2008, a 27-year high.