The Producer Price Index for Finished Goods rose 1.4 percent in January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This increase followed a 0.4-percent advance in December and a 1.5-percent rise in November. In January, at the earlier stages of processing, prices received by manufacturers of intermediate goods climbed 1.7 percent, and the crude goods index jumped 9.6 percent. On an unadjusted basis, prices for finished goods moved up 4.6 percent for the 12 months ended January 2010, their third consecutive 12-month increase. About three-fourths of the broad-based January advance in the finished goods index can be traced to higher prices for energy goods, which jumped 5.1 percent.
Expect the Monetarists to call for higher mortgage payments now that the global oil cartel has achieved some recent success with implementing higher prices.