PPI up tame 0.1% in February (Crude, intermediate prices surging)

[papau]

http://cbs.marketwatch.com/news/story.asp?guid=%7BA8CA54EB%2D76CD%2D4B84%2D80D3%2D394CBEC00237%7D&siteid=mktw

PPI up tame 0.1% in February
Crude, intermediate prices surging

By Rex Nutting, CBS.MarketWatch.com

WASHINGTON (CBS.MW) - Input prices are rising faster, but U.S. producers are not passing on those higher prices to their customers, according to Labor Department figures released Thursday.

The finished goods producer price index rose a tame 0.1 percent in February after soaring 0.6 percent in January. The PPI is up 2.1 percent year-over-year, the slowest pace since December 2002.

Excluding food and energy prices, the core PPI also rose 0.1 percent in February after rising 0.3 percent in January. The core PPI is up 1 percent in the past 12 months compared with 0.9 percent last month.

Further back in the production pipeline, inflation was hotter. Intermediate goods prices rose 0.9 percent, the biggest increase in a year. Core intermediate goods prices rose 0.9 percent, the biggest gain in nine years. Intermediate energy prices rose 0.6 percent.

Steel mill prices jumped a record 5.9 percent, while plywood prices rose 15.2 percent. Prices of cold rolled steel rose 12.4 percent.

Crude goods prices rose 2.5 percent in February after 2.8 percent in January.<snip>

[mbperrin]

1. plywood prices rose 15.2 percent(!)

Well, lessee, in December, 7/16" OSB sheets were 7.99 at Home Depot here in West Texas. Yesterday, they were $20.99; yeah, 15% seems about right. (unless you divide 200% by 3 and get 66% a month!)

It is funny that they can release these figures weeks and months late and everybody just goes, oh, well, nothing funny going on here!

Batten down the hatches and pay off everything you can - the Reconstruction Finance Corp V2 is coming soon. (Member them?)

[Robbien]

2. Food and Energy only rose 0.1%? Whhhhat?

That is only l.2% annualized. Was not February the month that energy prices started to escalate? Something is seriously wrong with these numbers.

[snippy]

4. I agree the numbers are misleading.

Energy prices fell during the first part of February but since then have risen sharply.

[Birthmark]

3. They didn't mention...

...our increased chocolate ration! Sorry, this crap is getting more than a little Orwellian at this point.

[On the Road]

5. How Can Another Producer Price Measure be up 41%

over the last 12 months? I just don't understand it. These are wonderland numbers. Building material prices -- everything from windows to lumber to plywood -- are up significantly. Oil is up. Metals are up. What's going down?

[leQ]

6. hopefully bu$h is

n/t