January PPI Rose 0.2% Led by Final Demand for Goods
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The Producer Price Index for final demand increased 0.2 percent in January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This advance followed a 0.1-percent rise in December and no change in November. On an unadjusted basis, the index for final demand moved up 1.2 percent for the 12 months ended in January, the largest 12-month advance since a 1.2-percent increase in October 2013.
In January, the 0.2-percent advance in prices for final demand can be primarily traced to the index for final demand goods, which rose 0.4 percent. Prices for final demand services inched up 0.1 percent.
*** Consensus views were looking for PPI up 0.2 percent and core PPI up 0.1 percent.
Within intermediate demand, the index for processed goods increased 0.6 percent in January, prices for unprocessed goods moved up 0.9 percent, and the index for services was unchanged.
Final Demand
(Final demand includes goods, services, and construction which are sold for personal consumption, capital investment, government purchases, and export. See table 4 for product detail.)
Final demand goods: The index for final demand goods advanced 0.4 percent in January, the same as in December. Leading the broad-based increase in January, prices for final demand goods less foods and energy rose 0.4 percent. The indexes for final demand foods and final demand energy moved up 1.0 percent and 0.3 percent, respectively.
Product detail: Accounting for nearly a quarter of the January rise in the index for final demand goods, prices for pharmaceutical preparations advanced 2.7 percent. The indexes for dairy products, residential electric power, utility natural gas, beef and veal, and unprocessed finfish also moved up. In contrast, the gasoline index fell 1.3 percent. Prices for diesel fuel and integrated microcircuits also decreased.
Final demand services: The index for final demand services inched up 0.1 percent in January following a 0.1-percent decline in December. In January, the indexes for both final demand services less trade, transportation, and warehousing and for final demand trade services moved up 0.1 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Conversely, prices for final demand transportation and warehousing services fell 1.1 percent.
Product detail: A major factor in the increase in the index for final demand services was prices for loan services (partial), which climbed 2.1 percent. The indexes for apparel, jewelry, footwear, and accessories retailing; traveler accommodation services; hospital outpatient care; and securities brokerage, dealing, and investment advice also advanced. In contrast, prices for airline passenger services fell 4.3 percent. The indexes for services related to securities brokerage and dealing; food and alcohol retailing; and health, beauty, and optical goods retailing also declined.
The full press release with charts can be accessed here.
In January, the 0.2-percent advance in prices for final demand can be primarily traced to the index for final demand goods, which rose 0.4 percent. Prices for final demand services inched up 0.1 percent.
*** Consensus views were looking for PPI up 0.2 percent and core PPI up 0.1 percent.
Within intermediate demand, the index for processed goods increased 0.6 percent in January, prices for unprocessed goods moved up 0.9 percent, and the index for services was unchanged.
Final Demand
(Final demand includes goods, services, and construction which are sold for personal consumption, capital investment, government purchases, and export. See table 4 for product detail.)
Final demand goods: The index for final demand goods advanced 0.4 percent in January, the same as in December. Leading the broad-based increase in January, prices for final demand goods less foods and energy rose 0.4 percent. The indexes for final demand foods and final demand energy moved up 1.0 percent and 0.3 percent, respectively.
Product detail: Accounting for nearly a quarter of the January rise in the index for final demand goods, prices for pharmaceutical preparations advanced 2.7 percent. The indexes for dairy products, residential electric power, utility natural gas, beef and veal, and unprocessed finfish also moved up. In contrast, the gasoline index fell 1.3 percent. Prices for diesel fuel and integrated microcircuits also decreased.
Final demand services: The index for final demand services inched up 0.1 percent in January following a 0.1-percent decline in December. In January, the indexes for both final demand services less trade, transportation, and warehousing and for final demand trade services moved up 0.1 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Conversely, prices for final demand transportation and warehousing services fell 1.1 percent.
Product detail: A major factor in the increase in the index for final demand services was prices for loan services (partial), which climbed 2.1 percent. The indexes for apparel, jewelry, footwear, and accessories retailing; traveler accommodation services; hospital outpatient care; and securities brokerage, dealing, and investment advice also advanced. In contrast, prices for airline passenger services fell 4.3 percent. The indexes for services related to securities brokerage and dealing; food and alcohol retailing; and health, beauty, and optical goods retailing also declined.
The full press release with charts can be accessed here.
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