Research >> Economics
Producer Price Index edged down 0.1% in January, ex Fd & Engy rose 0.2%
|
The Producer Price Index for final demand edged down 0.1 percent in January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices also fell 0.1 percent in December and inched up 0.1 percent in November. (See table A.) On an unadjusted basis, the final demand index advanced 2.0 percent for the 12 months ended in January.
In January, the decline in the final demand index can be traced to a 0.8-percent decrease in prices for final demand goods. In contrast, the index for final demand services increased 0.3 percent.
The index for final demand less foods, energy, and trade services rose 0.2 percent in January following no change in December. For the 12 months ended in January, prices for final demand less foods, energy, and trade services moved up 2.5 percent.
Final Demand
Final demand goods: The index for final demand goods fell 0.8 percent in January, the largest decrease since dropping 1.2 percent in September 2015. Over three-quarters of the January decline can be traced to prices for final demand energy, which moved down 3.8 percent. The index for final demand foods fell 1.7 percent. Conversely, prices for final demand goods less foods and energy climbed 0.3 percent.
Product detail: Forty percent of the decrease in the index for final demand goods is attributable to a 7.3-percent decline in gasoline prices. The indexes for fresh and dry vegetables, diesel fuel, fresh fruits and melons, basic organic chemicals, and jet fuel also moved lower. In contrast, prices for construction machinery and equipment rose 1.7 percent. The indexes for processed poultry and residential electric power also increased.
Final demand services: The index for final demand services advanced 0.3 percent in January following no change in December. Over 80 percent of the rise can be traced to margins for final demand trade services, which increased 0.8 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand transportation and warehousing services climbed 0.5 percent. The index for final demand services less trade, transportation, and warehousing was unchanged.
Product detail: Half of the advance in prices for final demand services is attributable to margins for apparel, jewelry, footwear, and accessories retailing, which rose 6.3 percent. The indexes for health, beauty, and optical goods retailing; machinery, equipment, parts, and supplies wholesaling; chemicals and allied products wholesaling; hospital inpatient care; and transportation of passengers (partial) also moved higher. Conversely, prices for portfolio management fell 5.2 percent. The indexes for automotive fuels and lubricants retailing and for physician care also decreased.
Posted: February 14, 2019 Thursday 08:30 AM