REPEAT: MNI DATA ANALYSIS: January PPI +0.4%; Claims 230k>

Repeats Story Initially Transmitted at 13:30 GMT Feb 15/08:30 EST Feb 15

--January PPI Ex. Food, Energy, Trade +0.4%; Trade Services +0.4%

--PPI +2.7% Y/Y Vs +2.6% In December, Ex Food, Energy +2.2% Vs +2.3%

--Initial Claims Rebound By 7,000 To 230,000; Offset Prev Week's Drop

By Kevin Kastner

     WASHINGTON (MNI) - Final demand PPI rose by 0.4% in January, as 

expected, with a stronger-than-expected 0.4% gain outside of food and 

energy prices, data released by the Bureau of Labor Statistics Thursday 

showed. 

     An analysis of MNI survey data showed underestimates in most recent 

two January reports, so the current month's result maintain that trend. 

     The personal consumption price measure in the data, which some 

analysts use a preview measure for CPI and the PCE price index, rose by 

0.5% and was up 0.4% ex. food and energy and up 0.4% also excluding 

trade services, suggesting upside risk to the PCE inflation data. 

--ENERGY, TRADE SERVICES BOTH HIGHER

     Energy prices were rose 3.4% in the month, with gasoline prices up 

7.1% to add to the gains in other energy components except natural gas. 

Food prices were down 0.2%. 

     Trade services prices rose 0.3% in the month, while the core rate 

the BLS prefers, excluding the change in trade services as well as food 

and energy, was up 0.4% in January. 

--Y/Y INFLATION GROWING 

     The year/year rates for these measures indicated some overall 

acceleration. Overall PPI was up 2.7% year/year in January after a 2.6% 

year/year rise in December. 

     At the same time, the year/year rate for PPI excluding food and 

energy slipped to 2.2% from 2.3% in December due to base factors, but 

the year/year rate for PPI excluding food, energy and trade services 

accelerated to 2.5% from 2.3%. 

--CLAIMS LEVEL RECOVERS

     Also released on Thursday, initial jobless claims rose by 7,000 to 

230,000 in the February 10 week, slightly ahead of the 228,000 level 

expected and recovering all of the previous week's revised 7,000 

decline. 

     The four-week moving average rose for the first time in five weeks 

as the recent low 216,000 level in the January 13 week dropped out of 

the equation. The average would hold roughly steady next week if there 

is no change to the headline number as the 231,000 level in the January 

20 week drops out. 

     Continuing claims rose by 15,000 to 1.942 million in the February 3 

week, but the data still suggest that labor markets remain tight and 

that workers are finding jobs fairly quickly. 

     ** MNI Washington Bureau: 202-371-2121 **