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 Edge Higher With Energy Price Rise; Core Prices Firm
by Tom Moeller  March 13, 2019

The headline Final Demand Producer Price Index improved 0.1% during February (1.9% y/y) following three months of slight decline. The Action Economics Forecast Survey expected a 0.2% increase. Producer prices excluding food & energy also rose 0.1% (2.5% y/y) after a 0.3% strengthening. A 0.2% gain had been anticipated. The PPI excluding food, beverages and trade services, another measure of underlying price inflation, rose 0.1% (2.3% y/y) following a 0.2% rise.

Higher energy prices pushed the PPI higher with a 1.8% increase (-6.4% y/y). It was the first rise in four months. It reflected a 3.3% gain in the cost of gasoline, which remained down 19.0% y/y. Home heating oil prices also improved 3.3% (-8.9% y/y). Natural gas prices fell 0.7% (-0.3% y/y) but the cost of electricity ticked 0.1% higher both m/m and y/y.

A 0.3% decline (+1.6% y/y) in food prices offset the rise in energy prices. It followed a 1.7% decline during January. Beef & veal prices increased 1.6% (4.0% y/y) and egg prices rose 6.7%, but remained down by one-quarter y/y. Fresh fruit prices eased 0.5% (-0.1% y/y) and dairy product costs strengthened 1.6% (3.1% y/y).

The 0.1% rise in core goods prices reflected a 0.2% gain (2.8% y/y) in finished consumer goods prices. Nondurable consumer goods costs rose 0.3% (3.1% y/y) but women's apparel prices eased 0.2% (+0.4% y/y. Durable consumer goods prices held steady (2.2% y/y) after a 0.7% jump. Appliance prices strengthened 0.5% (5.9% y/y) but light truck prices fell 0.3% (+1.1% y/y) for the third straight month. Private capital equipment prices rose 0.1% (2.7% y/y).

Services prices held steady but trade services prices fell 0.4%. Construction costs eased 0.1%.

Prices for intermediate demand strengthened 0.4% after three straight months of 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, %) Feb Jan Dec Feb Y/Y 2018 2017 2016
Final Demand 0.1 -0.1 -0.1 1.9 2.9 2.3 0.4
   Excluding Food & Energy 0.1 0.3 0.0 2.5 2.6 1.9 1.2
   Excluding Food, Energy & Trade Services 0.1 0.2 0.0 2.3 2.8 2.1 1.2
   Goods 0.4 -0.8 -0.3 0.6 3.4 3.3 -1.4
      Foods -0.3 -1.7 2.6 1.6 0.2 1.2 -2.8
      Energy 1.8 -3.8 -4.3 -6.4 10.2 10.4 -8.4
    Goods Excluding Food & Energy 0.1 0.3 0.1 2.3 2.5 2.2 0.7
   Services 0.0 0.3 0.0 2.5 2.6 1.8 1.4
      Trade Services -0.4 0.8 -0.1 2.6 1.8 1.4 1.3
   Construction -0.1 0.6 0.1 4.8 4.0 2.2 1.1
Intermediate Demand - Processed Goods 0.4 -1.4 -0.9 0.6 5.3 4.7 -3.1
close
large image