FYI, believe that the CPI was up 0.3% but don*t place any great store by
the *reasons* given.
Dave Richardson
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BLS DAILY REPORT, THURSDAY, NOVEMBER 14, 1996
RELEASED TODAY:
CPI -- On a seasonally adjusted basis, the CPI-U rose 0.3 percent in
October, the same as in September. The food index rose 0.6 percent in
September, reflecting sharp increases in prices for dairy products and for
fresh fruits and vegetables. The energy index registered its first
increase since May, advancing 0.7 percent in October. The index for
petroleum-based energy increased 1.4 percent, while the index for energy
services was unchanged. Excluding food and energy, the CPI rose 0.2
percent, following a 0.3 percent increase in September. Declines in
vehicle purchase costs and in the index for household furnishings and
operation and a smaller increase in the index for airline fares more than
offset a larger increase in shelter costs ....
REAL EARNINGS -- Real average weekly earnings fell by 1.5 percent from
September to October after seasonal adjustment. This decline is attributed
to a 1.2 percent decrease in average weekly hours and a 0.3 percent rise in
the CPI-W. Average hourly earnings were unchanged in October ....Real
average weekly earnings declined by 0.6 percent between October of 1995 and
1996 ....
_____Although the PPI for finished goods rose 0.4 percent, seasonally
adjusted, in October, the core rate dipped 0.3 percent, BLS reports ....For
the year ended in October, the PPI for finished goods has risen 3 percent,
but the core rate has advanced only 0.8 percent. Despite a surge in energy
and food prices in October, analysts voiced confidence that inflation is
well contained ....BLS also announced quality adjustments for 1997 model
vehicles. This is the value BLS places on the improvements and deducts
from the cost of each car sampled ....This change, theoretically at least,
can depress the price increases on passenger cars, said Shannon Martin, a
BLS economist who works with quality adjustments. Martin could not
estimate what effect the quality adjustment had on the October passenger
car index ....(Daily Labor Report, pages 2,D-1).
_____Amid clear signs that economic growth has slowed and inflation remains
low, Federal Reserve policymakers met but, as expected left short-term
interest rates unchanged ....Since mid-September, new figures on the
nation's GDP, payroll employment growth, consumer spending and industrial
production have all indicated that economic growth has slowed significantly
since early summer ....Earlier yesterday, the Labor Department reported
that producer prices for finished goods rose 0.4 percent in October.
However, the so-called core portion had declined by 0.3 percent ....The
gyrations in the core portion of the index over the past two months were
largely the result of seasonal adjustment problems with prices for 1997
model cars. In recent years, carmakers have varied their schedules for
introducing new models. In September, when more new cars than usual were
sold to dealers, seasonally adjusted producer prices for the vehicles rose
1.2 percent. Then last month, when prices did not rise as much as normal
-- because models had been introduced the month before -- the new car index
showed a 1.6 percent decline (Washington Post, page E3).
_____The Fed leaves interest rates unchanged, and the decline in the "core"
producer price index for October confirms that inflation is dormant. The
core rate decline was the sharpest in two years ....(Wall Street Journal,
page A2).
Employers plan to hire more new college graduates in 1997 than in 1996, due
to increased demand for workers with computer and engineering skills,
according to a survey released by the National Association of Colleges and
Employers. The increase in hiring continues an upward trend in recent
years ....(Daily Labor Report, page A-1).
Nearly seven out of 10 employers responding to BNA's annual holiday survey
(69 percent) designated two-day paid holiday period for both Thanksgiving
and the next day, compared with 65 percent in 1995 ....(Daily Labor Report,
page A-2).
President Clinton is aiming to name a new secretary of labor prior to his
Jan. 20 inauguration, according to Robert B. Reich, the current
officeholder. The president would like to fill the post before Reich
leaves in hopes that overlap between the two actions will help ensure
continuity in the department's operations, the labor secretary tells an
employee meeting. Aiming for a smooth transition, Reich says he is working
to convince his senior staff to remain at the Labor Department because
"continuity is so important" ....(Daily Labor Report, page A-4).
