Producer Prices Climb Higher Than Expected in August

The video discusses the Producer Price Index (PPI) for final demand, highlighting a slight increase over the forecast but a decrease from July's figures. The PPI on a year-over-year basis is at 8.3%, up from 7.8%. Core PPI rose by 6/10 on a monthly basis, matching forecasts, and increased to 6.7% year-over-year. The video emphasizes that while producer price inflation is real, it doesn't directly translate to consumer costs, as companies absorb some of the impact despite rising consumer prices.

What was the month-over-month change in the PPI for final demand compared to the forecast?

• 1/10 of a percent lower

• 1/10 of a percent higher

• 3/10 of a percent higher

• 3/10 of a percent lower

How did the core PPI change on a monthly basis?

• It increased by 6/10

• It increased by 1%

• It decreased by 1%

• It remained the same

What was the year-over-year change in the core PPI?

• It increased to 6.7%

• It decreased to 6.2%

• It increased to 7.0%

• It remained at 6.2%

How does producer price inflation affect consumer costs?

• It has no effect on consumer costs

• It directly increases consumer costs

• It decreases consumer costs

• It is partially absorbed by companies

What is the role of companies in managing increased producer prices?

• They absorb some of the costs

• They pass all costs to consumers

• They reduce their margins

• They increase production