By: Asha_Bangalore
The Producer Price Index (PPI) of Finished Goods moved up 0.1% in June, following a string of three monthly declines. The energy price index fell 0.9% in June vs. a 4.3% decline in May. Wholesale gasoline and natural gas prices moved up in June but residential electricity costs declined and provided a large enough offset to bring down the overall finished energy price index. The 0.5% increase in food prices was one of the culprits for a gain in the headline index.
Chart 1
The core PPI, which excludes food and energy, increased 0.2% in June to mark the fourth consecutive monthly increase. According to the BLS, the 1.4% increase in the price of light trucks accounts for 70% of the increase in the core PPI in June. On a year-to-year basis, the core PPI has hovered in the 2.0-2.3% range for four straight months. This aspect is not too worrisome because of the weak pass-through of wholesale core prices to retail consumer prices (see Chart 2). The Fed’s preferred inflation measures are the personal consumption expenditure (PCE) price index and the core personal consumption expenditure price index; both of these price gauges show contained readings below the Fed’s target of 2.0%.
Chart 2
Producer Price Index – June 2012
Asha Bangalore — Senior Vice President and Economist
Asha Bangalore is Vice President and Economist at The Northern Trust Company, Chicago. Prior to joining the bank in 1994, she was Consultant to savings and loan institutions and commercial banks at Financial & Economic Strategies Corporation, Chicago.
Copyright © 2012 Asha Bangalore
The opinions expressed herein are those of the author and do not necessarily represent the views of The Northern Trust Company. The Northern Trust Company does not warrant the accuracy or completeness of information contained herein, such information is subject to change and is not intended to influence your investment decisions.
© 2005-2012 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.
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Coffee, Tea & Spices Wholesaling in the UK Industry Market Research Report Now Updated by IBISWorld - San Francisco Gate
The Coffee, Tea & Spices Wholesaling industry has had a bittersweet run. Although it has benefited from distributing inexpensive grocery staples in a financially distressed climate, it has also had to contend with increasing incidences of wholesale bypass. In the five years through 2012-13, industry revenue is expected to decline by 1.5% per annum. The future for the industry, like most of the economy, looks much brighter. Over the next five years, the industry is expected to rebound to growth, underpinned by the global financial recovery and a shift towards premium and high-margin products. Tea consumption will be largely driven by its perception of being a healthy beverage offering a variety of benefits. The increased availability of a wider range of coffee flavours in traditional supermarket and grocery stores will stimulate demand and raise awareness of the gourmet and specialty segment. Cocoa and spices consumption is also forecast to grow, particularly in the food-service and out-of-home markets. However, a risk to growth is the expected threat from supermarkets bypassing wholesalers given their buying power and industry clout. For these reasons, industry research firm IBISWorld has updated its report on the Coffee, Tea & Spices Wholesaling industry.
London, United Kingdom (PRWEB) July 14, 2012
The Coffee, Tea & Spices Wholesaling industry has had a bittersweet run. According to IBISWorld industry analyst Nick Sallmann, “although it has benefited from distributing inexpensive grocery staples in a financially distressed climate, it has also had to contend with increasing incidences of wholesale bypass”. The domestic consumption landscape is robust as Britain is the world's second-largest consumer of tea and the largest drinker of instant coffee in Europe. The United Kingdom houses some of the world's largest cocoa buyers and a strong multi-ethnic population. Producer-driven initiatives such as the fair-trade and organic movements have resulted in margins growing over the past five years, but were partially offset by profit erosion due to wholesale bypass. In the five years through 2012-13, industry revenue is expected to decline by 1.5% per annum. In 2012-13, industry revenue is expected to decline by 0.6% to £1.74 billion.
The future for the industry, like most of the economy, looks much brighter. Sallmann adds, “over the next five years, the industry is expected to rebound, underpinned by the global financial recovery and a shift towards premium and high-margin products”. Tea consumption will be largely driven by its perception of being a healthy beverage offering a variety of benefits. It is a rich source of well-known antioxidants such as vitamins C and E, which are expected to help lower the risk of heart disease, stroke and cancer. The increased availability of a wider range of coffee flavours in traditional supermarket and grocery stores will stimulate demand and raise awareness of the gourmet and specialty segment. Cocoa and spices consumption is also forecast to grow, particularly in the food-service and out-of-home markets. However, a risk to growth is the expected threat from supermarkets bypassing wholesalers given their buying power and industry clout. In the five years through 2017-18, revenue is forecast to increase.
The Coffee, Tea & Spices Wholesaling industry is subject to a high level of market share concentration, with the top four players expected to account for just over 71% of the market. Both the tea and coffee segments are dominated by multinational players that fiercely compete for market share and have well-established brand portfolios. They also have access to capital resources to invest in expensive brand promotion and advertising initiatives that aim to harness the power of their brands and create customer loyalty. Furthermore, given that the major players operate across various facets of the grocery industries, they often have the resources and capital muscle to bypass wholesalers and deal directly with retailers. Private label sales account for a small share of the market, with some of the major players also producing supermarket brands. Brand loyalty is an important factor for consumers when they make purchasing decisions. Major companies include Tata Global Beverages, Nestle UK, Kraft Foods and Unilever.
For more information on the Coffee, Tea & Spices Wholesaling industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
This industry wholesales coffee, tea, cocoa and spices. Companies purchase processed coffee, tea, cocoa and spices from various producers and sell them to retailers such as supermarkets, grocery stores, food-service firms and other institutional customers. Wholesalers perform no additional processing beyond repackaging; instead they focus on storage and distribution of products.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.
For the original version on PRWeb visit: http://www.prweb.com/releases/prweb2012/7/prweb9694098.htm
Naked man 'smashes truck through Texas mall before breaking into store and putting on clothes' - Daily Mail
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A naked man ploughed his pickup truck into a closed shopping mall, mowing down kiosks before stopping and robbing a sport store, police said.
After smashing his truck through the mall’s glass doors Arthur Walker allegedly drove through the gates of a Champs Sports store.
The 35-year-old then leapt out his red Dodge pickup truck and dressed himself in the store’s clothing, including a pair of Nike Jordan sneakers.
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Arrested: Arthur Walker, 35, was naked when he ploughed his pickup truck into a closed shopping mall on Friday morning, mowing down kiosks before stopping and robbing a sport store, police said
The bizarre rampage unfolded at 7.30am Friday at the Southwest Center Mall in Dallas.
Police arrived and arrested Walker inside the clothing store. Sgt. Elliott Forge removed the Nike sneakers to return to the store before Walker was taken to a hospital for evaluation.
‘I only took off the sneakers, because nobody wants to see him nude. We can at least return the sneakers,' Forge told WFAA.
Smashed: Walker allegedly drove his red pick up through the glass doors of the Southwest Center Mall in Dallas; no one was injured in the incident which happened during closing hours
Loot: Walker allegedly smashed his car into this clothing store then leapt out the vehicle and dressed into their clothes; police arrested Walker in the store
Forge added that he believed the suspect was not in his ‘right mind’ and said that when they deal with people who are naked they are ‘usually under the influence of some kind of narcotic.’
Before the mall occurrence, Walker was involved in a domestic disturbance and left the home naked, police said.
A woman called police shortly before 7.30am saying that a naked man had approached her car wrapped in only a blanket.
Taken off: Walker was taken to hospital for a medical evaluation. He is now in jail with no bond set
She told police he told her to get out the vehicle but she drove away.
Police have not released the results of Walker’s medical evaluation.
No-one was injured in the mall crash, which happened before the arcade opened its doors to customers.
Walker was jailed without bond on a burglary charge. Dallas County Jail records list no attorney for him.
Watch video here
Now THAT'S Texas-sized stupidity! ROFL
- DrMallard, West Palm Beach, Florida, USA, 15/7/2012 02:36
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