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  • Consumer Price and Producer Price Indices Edge Upward

    February 19, 2010 - Rounding out a data-heavy week, core consumer prices fell a seasonally adjusted 0.1% in January, the first calculable decline since 1982. Core prices are usually watched closely by economists because they exclude food and energy costs.

    Overall, January's CPI increased a seasonally adjusted 0.2% in January. Led by high energy costs, the CPI has increased 2.6% in the past year, while the core CPI has seen just a 1.6% increase.

    The CPI report comes amid the release of last month's producer price data. According to the Labor Department, the PPI for finished goods increased a seasonally adjusted 1.4% during the month of January. The core PPI, which excludes food prices and volatile energy was up 0.31% last month, after remaining stagnate in December. These are the largest gains seen since November of last year.

    Additionally, January's leading economic indicators climbed 0.3% in January. Having risen for the past ten months, these recent increases are spurred by an improvement in the financial markets and also by a manufacturing upturn. The indicators, which usually gauge the economic outlook for the next three to six months, are assuring that the economy will continue to grow into the spring.

    Feb 19 2010