producer price indexes
OVERVIEW
United States Producer Price Index YoY and MoM
PPI is a family of data that gauges the costs of production. There are three areas of PPI classification that use the same pool of data from the BLS: industry, commodity and commodity-based final and intermediate demand (FD-ID).
Finished Goods YoY~ Finished goods are goods that have completed the manufacturing process but have not yet been sold or distributed to the end user.
Final Demand ~ PPI for final demand measures the average change in prices received by domestic producers of goods, services and construction sold for personal consumption, capital, investment, government and export.
PRODUCER PRICE INDEXES - DECEMBER 2022
The Producer Price Index for final demand declined 0.5% in December, seasonally adjusted. Final demand prices rose 0.2% in November and 0.4% in October.
In December, the decrease in the final demand index can be attributed to a 1.6% decline in prices for final demand goods.
In contrast, the index for final demand services rose 0.1%.
Prices for final demand less foods, energy, and trade services edged up 0.1% in December after increasing 0.3% in November.
Final demand goods:
Prices for final demand goods moved down 1.6% in December, the largest decrease since falling 1.8% in July. Leading the December decline, the index for final demand energy dropped 7.9%. Prices for final demand foods decreased 1.2%.
Conversely, the index for final demand goods less foods and energy advanced 0.2%.
Product Detail:
Nearly half of the December decrease in the index for final demand goods can be traced to a 13.4% decline in the prices for gasoline. The indexes for diesel fuel; jet fuel; fresh and dry vegetables; canned, cooked, smoked, or prepared poultry; and basic organic chemicals also fell.
In contrast, prices for carbon steel scrap increased 8.3%. The indexes for chicken eggs and electric power also moved higher.
Final demand services:
Prices for final demand services edged up 0.1% in December after rising 0.2% in November. The December increase can be traced to margins for final demand trade services, which advanced 0.3%. (Trade indexes measure changes in margins received by wholesalers and retailers.)
Conversely, the index for final demand transportation and warehousing services fell 0.2%, while prices for final demand services less trade, transportation, and warehousing were unchanged.
Product Detail:
A major factor in the December increase in prices for final demand services was a 17.6% jump in margins for fuels and lubricants retailing. The indexes for deposit services (partial), airline passenger services, inpatient care, and professional and commercial equipment wholesaling also moved higher.
In contrast, prices for truck transportation of freight decreased 1.7%. The indexes for residential real estate loans (partial), machinery and vehicle wholesaling, and guestroom rental also fell.
PRODUCER PRICE INDEXES - Year Over Year
On an adjusted basis, the index for final demand increased 6.2% in 2022, after rising 10.0% in 2021.
The index for final demand less foods, energy and trade services advanced 4.6% in 2022 following a 7.0% rise in 2021.
In 2022, PPI final demand saw the largest increases in:
FOODS showed a 14.3% year-on-year increase as well, led by a 64.9% increase in crude finished consumer foods. (unadjusted)
and FINAL DEMAND CONSTRUCTION which rose 18.5% year-on-year, led by a 19.9% increase in construction for private capital investment.
