Long Term Perspective
Prices of crude and intermediate materials excluding food and energy seemed to peak in early 2000 on a year over year basis. In the third and fourth quarters of 2000 and throughout 2001, price increases became smaller. Prices turned around in 2002, which reflects a turnaround in manufacturing activity more than it does a potential for accelerated inflation rates for finished goods. While price changes in the earlier stages of processing sometimes get passed along to the finished goods index, there are times when they don't.

Short Term Perspective
Excluding food and energy prices, intermediate goods prices edged up only 0.1 percent in September, but crude goods prices jumped 2.3 percent. As a result, the year-over-year gain in crude materials prices accelerated, but intermediate goods prices (excluding food and energy) were on par with a year ago.

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