Recent Updates

  • Israel: Dwellings by Stages of Construction (Dec), IP (Jan)
  • Portugal: Preliminary BOP, Trade in Services (Jan)
  • Bosnia: PPI (Feb)
  • Macedonia: Wages (Jan)
  • Greece: Turnover Index (Jan)
  • South Africa: CPI (Feb), BOP (Q4), Wholesale, Retail & Motor Trade Sales (Jan)
  • UK: CPI, RPI, PPI (Feb), CBI Industrial Trends Survey (Mar), Land Registry HPI (Jan)
  • more updates...

Economy in Brief

U.S. Producer Prices Decline; Core PPI Rises
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
close
large image