Updated: 15-Mar-23 09:33 ET
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Updated: 15-Mar-23 09:33 ET |
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Highlights
- The Producer Price Index for Final Demand declined 0.1% month-over-month in February (Briefing.com consensus +0.3%) following a downwardly revised 0.3% increase (from 0.7%) in January.
- Excluding food and energy, the index for final demand was flat month-over-month (Briefing.com consensus +0.4%) following a downwardly revised 0.1% increase (from 0.5%) in January.
- On a year-over-year basis, the index for final demand was up 4.6% versus up 5.7% in January, while the index for final demand, excluding food and energy, was up 4.4% versus up 5.0% in January.
Key Factors
- The index for final demand goods declined 0.2% month-over-month with a 2.2% decrease in prices for final demand foods leading the decline.
- The index for final demand services was down 0.1% month-over-month, dragged down by a 0.8% decline in margins for final demand trade services.
Big Picture
- The key takeaway is that this should be seen by the Fed as a pleasing inflation report, as it also featured month-over-month declines in pipeline measures that include the index for processed goods for intermediate demand (-0.4%) and the index for unprocessed goods for intermediate demand (-3.8%).
Category |
FEB |
JAN |
DEC |
NOV |
OCT |
Final Demand |
-0.1% |
0.3% |
-0.2% |
0.3% |
0.3% |
Core (excluding ...) |
|
|
|
|
|
Food and Energy |
0.0% |
0.1% |
0.3% |
0.3% |
0.2% |
Food, Energy, and Trade |
0.2% |
0.5% |
0.2% |
0.4% |
0.2% |
Final Demand Goods |
|
|
|
|
|
Total |
-0.2% |
1.2% |
-1.4% |
0.3% |
0.4% |
Energy |
-0.2% |
5.2% |
-6.3% |
-2.2% |
1.5% |
Finished Goods |
-0.3% |
1.4% |
-1.1% |
0.5% |
0.8% |
Final Demand Services |
|
|
|
|
|
Total |
-0.1% |
-0.1% |
0.4% |
0.3% |
0.2% |
Trade |
-0.8% |
-1.1% |
0.7% |
0.2% |
0.2% |
Intermediate Demand |
|
|
|
|
|
Processed |
-0.4% |
1.1% |
-2.5% |
-0.5% |
-0.2% |
Unprocessed |
-3.8% |
-6.3% |
1.6% |
-3.1% |
-9.7% |
Services |
0.3% |
0.7% |
0.0% |
0.8% |
0.4% |