Long Term Perspective
Prices will increase or decrease at earlier stages of production before consumers pay more (less) for finished goods. Changes in prices of food and energy products tend to overshadow changes in prices of other goods. Intermediate goods price gains peaked in 2000 while prices for crude materials were still accelerating until early 2001. Both indices declined in 2001 but staged a turnaround in 2002 and continued to rise in early 2003.

Short Term Perspective
Crude materials prices jumped 3.4 percent in September; in contrast intermediate goods prices dipped 0.1 percent during the month. On a year-over-year basis, crude materials prices are up 22.2 percent while intermediate goods prices are 3.8 percent higher than year ago levels.

PPI: Intermediate vs. Crude Materials   •   Excluding Food & Energy Prices: Intermediate vs. Crude   •   CPI vs. PPI - Finished Goods

Excluding Food & Energy Prices : CPI vs. PPI   •   Employment Cost Index vs. Wages & Salaries   •   Alternative Inflation Measures