Recent Updates

  • Poland: Assets of Insurance Companies (Q2); Latvia: PPI (Aug); Lithuania: IP (Aug); Hungary: Inflation Expectations and Forecasts (Sep); Slovenia: Consumer Confidence (Sep), PPI (Aug)
  • Switzerland: Foreign Trade (Aug); Portugal: BOP, Cent Gov Debt, Monetary Survey, MFI Balance Sheet, Securities (Jul)
  • Macao: CPI (Aug); Korea: Frist 20 Days of Trade (Sep); Hong Kong: CPI (Aug), IIP, Gross External Debt (Q2); Thailand: International Trade (Aug)
  • Norway: International Reserves (Aug), Monetary Policy Projection
  • more updates...

Economy in Brief

U.S. Producer Prices Increase An Expected 0.3%
by Tom Moeller  January 13, 2017

The headline Final Demand Producer Price Index increased 0.3% (1.6% y/y) during December after an unrevised 0.4% November rise. The rise matched expectations in the Action Economics Forecast Survey. During all of 2016, prices increased 0.4% after a 0.9% decline in 2015. The PPI excluding food and energy prices rose 0.2% m/m (1.6% y/y) in December, also as expected.

An updated measure of "core" PPI inflation has evolved, known as final demand prices excluding food, energy, and trade services prices. It is available only back to 2014. This measure rose a minimal 0.1% (1.7% y/y) in December following a 0.2% November rise. During all of last year, however, the 1.2% rate of increase was double the 2015 increase. Prices of trade services improved 0.2% (1.0% y/y) following a 1.3% jump.

Prices of final demand goods jumped 0.7% (1.9% y/y). It reflected the strong 2.6% increase (5.9% y/y) in energy prices which followed 0.3% slip. This monthly strength was accompanied by a 0.7% rise (-1.1% y/y) in food prices, which followed a 0.6% increase.

Nondurable goods prices excluding food & energy remained unchanged (+3.5% y/y) for the second month in the last three. Finished durable goods prices increased 0.5% (1.0% y/y) following a 0.1% dip. Private capital goods prices increased 0.4% (0.7% y/y).

Prices of final demand for services notched 0.1% higher (1.5% y/y) following a 0.5% jump. Trade services prices gained 0.2% (0.9% y/y) after a 1.3% strengthening. Prices for transportation of private passengers declined 2.4% (+0.6% y/y), transportation & warehousing costs edged 0.1% higher (-0.1% y/y).

Final demand construction prices eased 0.1%, following a 0.1% rise. The 0.6% y/y increase compares to up to 3.8% increases during the prior five years.

Prices of processed goods for intermediate demand rose 0.5% (1.8% y/y), the fourth consecutive monthly increase.

The PPI data are contained in Haver's USECON database with further detail in PPI and PPIR. The expectations figures are available in the AS1REPNA database.

Producer Price Index (SA, %) Dec Nov Oct Dec Y/Y 2016 2015 2014
Final Demand 0.3 0.4 0.0 1.6 0.4 -0.9 1.6
   Excluding Food & Energy 0.2 0.4 -0.2 1.6 1.2 0.8 1.7
   Excluding Food, Energy & Trade Services 0.1 0.2 -0.1 1.7 1.2 0.6 1.2
   Goods 0.7 0.2 0.4 1.9 -1.4 -4.3 1.3
      Foods 0.7 0.6 -0.8 -1.1 2.7 -2.6 3.2
      Energy 2.6 -0.3 2.5 5.9 -8.4 -20.6 -0.9
      Goods Excluding Food & Energy 0.3 0.2 0.1 1.7 0.8 0.4 1.5
   Services 0.1 0.5 -0.3 1.5 1.3 0.9 1.8
   Construction -0.1 0.1 0.7 0.6 1.1 1.9 2.9
Intermediate Demand - Processed Goods 0.5 0.3 0.3 1.8 -3.0 -6.9 0.6
close
large image