An increase of 0.7% is a statistical blip. These are only the preliminary numbers, which are almost always revised by the following month and sometimes revised again after that. Here are the PHS index numbers as they were originally announced and as they currently stand for 2006:

Month * Original * Revised * % Revision

Jan * 116.3 * 119.3 * +2.6%
Feb * 117.7 * 119.4 * +1.4%
Mar * 116.2 * 116.5 * +0.3%
Apr * 111.8 * 112.9 * +1.0%
May * 113.4 * 112.7 * -0.6%
Jun * 113.9 * 112.0 * -1.7%
Jul * 105.6 * 107.1 * +1.4%
Aug * 110.1 * 108.9 * -1.1%
Sep * 109.1 * 107.6 * -1.4%
Oct * 107.2 * 106.8 * -0.4%
Nov * 107.0 * 108.4 * +1.3%
Dec * 112.4 * 113.3 * +0.8%

The average change using absolute values is 1.2% — more than the claimed 0.7% month-to-month increase. By the time they finish revising the numbers, the increase could easily be a decrease instead.