Recent Updates
- China: Fixed Asset Investment, Online Retail Sales, IP (Apr)
- Construction PMIs - Ireland (Apr)
- Japan: Corporate Goods Price Index (Apr)
- New Zealand: Composite PMI, Performance of Service Index (Apr)
- Hong Kong: Centaline Property Affordability Ratio (Apr)
- more updates...
Economy in Brief
EMU IP Drops Month-to-Month and Year-over-Year
Industrial output among EMU members fell by 1.8% month-to-month in March...
U.S. Producer Price Inflation Moderates in April
The Producer Price Index for Final Demand increased 0.5% during April...
U.S. Housing Affordability Plunges in March
Affordable homes are in short supply...
U.S. Unemployment Claims Edge Upward
Initial claims for unemployment insurance filed in the week ended May 7 rose to 203,000 (-58.9% y/y)...
U.K. Shows Scatter-Shot IP Trends
Industrial output in the United Kingdom is mixed and convoluted...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Gerald D. Cohen February 14, 2019
The headline Final Demand Producer Price Index edged down 0.1% for the second consecutive month in January (+2.0% year-on-year). December's reading was revised up from -0.2%. The Action Economics Forecast Survey expected an increase of 0.1%. Producer prices excluding food & energy increased a great-than-expected 0.3% (2.6% y/y) after an unchanged reading (was -0.1%). A 0.2% gain had been anticipated. The PPI excluding food, beverages and trade services, another measure of underlying price inflation, rose 0.2% (2.5% y/y) following a flat December.
The decline in the PPI reflected a 3.8% drop in energy product prices (-7.5% y/y), the third consecutive monthly decline. Gasoline prices fell 7.3% (-21.0% y/y) while residential natural gas prices edged down 0.9% (+3.6% y/y). Electric power costs increased 0.3% (0.2% y/y). Food prices fell 1.7% in January (+1.4% y/y) after a 2.6% increase. A 22.1% drop in fresh fruits (-4.4% y/y) led the decline, reversing some of December's 45% jump.
Service prices rose 0.3% (2.8% y/y) after an unchanged reading in December (was -0.1%). The cost of trade services jumped 0.8% (3.2% y/y) while transportation & warehousing costs rose 0.5% (7.0% y/y). Prices for final demand services excluding trade, transportation & warehousing was unchanged for the second consecutive month (2.0% y/y).
Goods prices fell -0.8% (+0.4% y/y), the third monthly decline. Goods prices excluding food & energy rose 0.3% (2.4% y/y) after a 0.1% reading. Core consumer goods prices increased 0.4% (2.8% y/y), while capital equipment grew 0.6% (2.8% y/y). Government purchased goods prices less food & energy gained 0.4% (2.3% y/y). Construction prices jumped 0.6% (4.9% y/y) following a 0.1% increase.
Prices for intermediate demand processed goods fell 1.4% (+0.9% y/y), the third consecutive monthly decline.
The PPI data using both the current and old methodology are contained in Haver's USECON database. Further detail can be found in PPI and PPIR. The expectations figures are available in the AS1REPNA database.
Producer Price Index (SA, %) | Jan | Dec | Nov | Jan Y/Y | 2018 | 2017 | 2016 |
---|---|---|---|---|---|---|---|
Final Demand | -0.1 | -0.1 | 0.1 | 2.0 | 2.9 | 2.3 | 0.4 |
Excluding Food & Energy | 0.3 | 0.0 | 0.3 | 2.6 | 2.6 | 1.9 | 1.2 |
Excluding Food, Energy & Trade Services | 0.2 | 0.0 | 0.3 | 2.5 | 2.8 | 2.1 | 1.2 |
Goods | -0.8 | -0.3 | -0.5 | 0.5 | 3.4 | 3.3 | -1.4 |
Foods | -1.7 | 2.6 | 1.3 | 1.4 | 0.2 | 1.2 | -2.8 |
Energy | -3.8 | -4.3 | -5.1 | -7.5 | 10.2 | 10.4 | -8.4 |
Goods Excluding Food & Energy | 0.3 | 0.1 | 0.3 | 2.4 | 2.5 | 2.2 | 0.7 |
Services | 0.3 | 0.0 | 0.3 | 2.8 | 2.6 | 1.8 | 1.4 |
Trade Services | 0.8 | -0.1 | 0.4 | 3.2 | 1.8 | 1.4 | 1.3 |
Construction | 0.6 | 0.1 | 0.2 | 4.9 | 4.0 | 2.2 | 1.1 |
Intermediate Demand - Processed Goods | -1.4 | -0.9 | -0.6 | 0.9 | 5.3 | 4.7 | -3.1 |