Updated: 17-Feb-21 10:16 ET
| January PPI |
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| Updated: 17-Feb-21 10:16 ET |
Highlights
- The Producer Price Index for final demand jumped 1.3% month-over-month in January (Briefing.com consensus +0.5%) -- the largest increase since the index began in December 2009 -- while the index for final demand, less foods and energy, rose 1.2% month-over-month (Briefing.com consensus +0.2%).
Key Factors
- Two-thirds of the advance in prices for final demand can be traced to a 1.3% increase in the index for final demand services.
- Prices for final demand goods increased 1.4%.
- On a year-over-year basis, the Producer Price Index for final demand was up 1.7% versus 0.8% in December.
- On a year-over-year basis, the Producer Price Index for final demand, less foods and energy, was up 2.0% versus 1.2% in December.
Big Picture
- The key takeaway from this report is that producers clearly incurred higher prices in January; however, last week's Consumer Price Index showed that there wasn't any meaningful pass through to consumers. Nonetheless, there could be some angst about rising consumer prices in coming months given that the index for processed goods for intermediate demand was up 1.7% in January while the index for unprocessed goods for intermediate demand advanced 3.8%.
| Category | JAN | DEC | NOV | OCT | SEP |
| Final Demand | 1.3% | 0.3% | 0.1% | 0.5% | 0.3% |
| Core (excluding ...) | |||||
| Food and Energy | 1.2% | 0.1% | -0.1% | 0.4% | 0.2% |
| Food, Energy, and Trade | 1.2% | 0.4% | 0.2% | 0.1% | 0.4% |
| Final Demand Goods | |||||
| Total | 1.4% | 1.0% | 0.3% | 0.6% | 0.4% |
| Energy | 5.1% | 4.9% | 1.3% | 0.8% | -0.3% |
| Finished Goods | 1.1% | 0.8% | 0.2% | 0.6% | 0.2% |
| Final Demand Services | |||||
| Total | 1.3% | -0.1% | -0.2% | 0.5% | 0.2% |
| Trade | 1.0% | -0.8% | -0.6% | 1.3% | -0.3% |
| Intermediate Demand | |||||
| Processed | 1.7% | 1.4% | 1.3% | 0.3% | 0.6% |
| Unprocessed | 3.8% | 2.2% | 7.4% | 0.3% | 5.2% |
| Services | 1.35 | 0.4% | -0.1% | 0.6% | 1.1% |