PPI is up 4% for finished goods from a year ago. In September food PPI spiked to a 14% annual rate, but is still down more than 3% (annual rate) over the past five months.
The real story is the very low consumer price increases YoY in August 2010 – and that the seasonal adjustment factors are not working. There is hardly any seasonality in the data, and that the governments seasonal adjustments are over adjusting the data.
Producer Price Index (PPI) for August 2010 continued its 2010 anti-inflation tendency. The PPI is not a good leading indicator for consumer prices as historically only a portion of price increases actually leak through to the consumer.