Producer Price Index (PPI)

[tsptalk]

PPI For: Dec
Actual: 0.5%
B.com Forecast: 0.1%
B.com Cons: 0.2%
Prior: 0.2%

Core PPI For: Dec
Actual: 0.6%
B.com Forecast: 0.2%
B.com Cons: 0.3%
Prior: 0.0%


Highlights
The Producer Price Index for final demand increased 0.5% month-over-month (Briefing.com consensus: 0.2%), with the index for final demand services up 0.7%.
The index for final demand, excluding food and energy, jumped 0.6% month-over-month (Briefing.com consensus: 0.3%).
On a year-over-year basis, the index for final demand was up 3.0%, unchanged from November, while the index for final demand, excluding food and energy, was up 3.2% versus 3.0% in November.

Key Factors
The index for final demand goods was unchanged following a 0.8% increase in November.
The index for final demand services was up 0.7%, which is the largest increase since July. Two-thirds of the increase was due to a 1.7% increase in margins for final demand trade services (meaures changes in margins received by wholesalers and retailers).
The index for processed goods for intermediate demand moved down 0.1% after a 0.5% increase in November.
The index for unprocessed goods for intermediate demand jumped 2.3%, with more than three-fourths of the increase traced to prices for unprocessed energy materials.

Briefing.com

www.briefing.com

 

[tsptalk]

PPI For: Jan
Actual: 0.5%
B.com Forecast: 0.4%
B.com Cons: 0.3%
Prior: 0.4%
Revised From: 0.5%

Core PPI For: Jan
Actual: 0.8%
B.com Forecast: 0.3%
B.com Cons: 0.3%
Prior: 0.6%


Highlights
The Producer Price Index for final demand increased 0.5% month-over-month (Briefing.com consensus: 0.3%) following a downwardly revised 0.4% increase (from 0.5%) in December.
The Producer Price Index for final demand, excluding food and energy, surged 0.8% month-over-month (Briefing.com consensus: 0.3%) following a 0.6% increase in December.
The Producer Price Index for final demand was up 2.9% year-over-year, versus 3.0% in December, but the Producer Price Index for final demand, excluding food and energy, was up 3.6%, versus 3.3% in December.

Key Factors
The index for final demand goods decreased 0.3% following a 0.1% decline in December.
The index for final demand services jumped 0.8%, driven largely by a 2.5% increase in margins for final demand trade services.
The index for processed goods for intermediate demand was unchanged for the second straight month.
The index for unprocessed goods for intermediate demand declined 0.5% following a 1.9% increase in December.

Big Picture
The key takeaway from the report was rooted in the worrying core-PPI component, as that will foment concerns about pass-through to consumer prices that will likely keep the Fed leery about cutting rates soon.

Briefing.com

www.briefing.com