|
|
Article: Producer price index sags on cheap tobacco; report fosters expectations of stable inflation.
- Article from:
- The Bond Buyer
- Article date:
- September 13, 1993
- Author:
CopyrightCOPYRIGHT 1993 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
WASHINGTON -- A huge drop in tobacco prices caused the government's producer price index to plunge unexpectedly in August, bolstering analysts' expectations of stable inflation throughout the remainder of the year.
The Labor Department said the price index dropped a seasonally-adjusted 0.6% last month, while the core index, excluding food and energy prices, fell an even steeper 1.0%.
August marked the biggest drop in the producer price index in two and a half years and the largest decline in the core price index since it was first calculated during the energy crisis of the early 1970s. The index's decline was the fourth straight monthly drop after ...