Announcing our Speakers for the 2018 Kansas Economic Outlook Conference
MICHAEL SCHWANKE Anchor/Investigative Reporter
KWCH-12 Eyewitness News
ECONOMIC OUTLOOK AND FINANCIAL MARKET UPDATE
PAUL SINGLE Managing Director and Senior Portfolio Manager
City National Rochdale
STATE AND LOCAL EMPLOYMENT FORECAST
JEREMY HILL Director
Center for Economic Development and Business Research Wichita State University
JOSH ROE Deputy Secretary
Kansas Department of Agriculture
EDWARD CROSS President
Kansas Independent Oil and Gas Association (KIOGA)
Inflation Increased from May to June 2018
The Consumer Price Index is used to calculate inflation, or the change in price of a basket of goods and services, as it impacts consumers; whereas, the Producer Price Index measures changes in selling prices, thereby expressing price changes from the perspective of the seller who produces a particular commodity.
A slide presentation updated with June 2018 data shows the Midwest inflation rate increased from May to June for large and small uban metro areas.
The Producer Price Index data shows that prices in the United States have increased from June 2017 to June 2018 for aircraft (1.3 percent), wheat (20.4 percent), sorghum (7.3 percent), and petroleum (-7.3 percent). During that same time period, the index decreased for slaughter livestock (-10.7 percent) and natural gas (-13.9 percent).
The Cost of Living Index, from The Council for Community and Economic Research (C2ER), measures regional differences in the cost of consumer goods and services, excluding taxes and non-consumer expenditures, for professional and managerial households in the top income quintile. This index includes more than 90,000 prices covering 60 different items collected each quarter. The index measures the relative price levels in participating areas. The average for all participating places equals 100, and each area's index is a percentage of the average for all areas.
One of the index components measures the relative price of utilities between areas. The majority of the areas included in the index, 53 percent, had utility prices below the national average in 2017. The three Kansas metropolitan areas included in the index averaged 15.5 percent below the national average when weighted by population, Wichita was the only Kansas metropolitan area above the national average.
From April 2018 to May 2018, the WSU Current and Leading Indices both increased.
The U.S. and Midwest inflation rates both increased from May 2018 to June 2018
The unemployment rate for Kansas, as a whole, increased slightly from May 2018 to June 2018. The state of Kansas, Wichita, and Topeka unemployment rates all increased by 0.4 percent, while Manhattan and Lawrence both increased by 0.6 percent.
Current Unemployment Rate
Lending activity in the agricultural sector increased slightly in the second quarter of 2018, supported by larger loans for livestock. In the short term, higher livestock prices in the first half of the quarter likely were responsible for the increased size of livestock loans.