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Producer Price Index increased 0.2% in February, ex Fd & Engy up 0.2%
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The Producer Price Index for final demand advanced 0.2 percent in February, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.4 percent in January and were unchanged in December. On an unadjusted basis, the final demand index increased 2.8 percent for the 12 months ended in February.
In February, the rise in final demand prices is attributable to a 0.3-percent advance in the index for final demand services. In contrast, prices for final demand goods edged down 0.1 percent.
The index for final demand less foods, energy, and trade services climbed 0.4 percent in February, the same as in January. For the 12 months ended in February, prices for final demand less foods, energy, and trade services increased 2.7 percent, the largest rise since 12-month percent change data were available in August 2014.
Final Demand
Final demand services: Prices for final demand services moved up 0.3 percent in February, the same as in January. Most of the February advance can be traced to the index for final demand services less trade, transportation, and warehousing, which increased 0.3 percent. Prices for final demand transportation and warehousing services also moved higher, rising 0.9 percent. Conversely, margins for final demand trade services declined 0.2 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.)
Product detail: A major factor in the February advance in prices for final demand services was the index for traveler accommodation services, which climbed 3.7 percent. The indexes for automotive fuels and lubricants retailing, food retailing, bundled wired telecommunications access services, hospital inpatient care, and airline passenger services also moved higher. In contrast, margins for machinery, equipment, parts, and supplies wholesaling fell 1.4 percent. The indexes for apparel, jewelry, footwear, and accessories retailing and for cable and satellite subscriber services also decreased.
Final demand goods: Prices for final demand goods edged down 0.1 percent in February, the first decline since falling 0.5 percent in May 2017. In February, a 0.4-percent decrease in the index for final demand foods and a 0.5-percent decline in prices for final demand energy slightly outweighed a 0.2-percent increase in the index for final demand goods less foods and energy.
Product detail: Leading the February decrease in the index for final demand goods, prices for fresh and dry vegetables dropped 27.1 percent. The indexes for gasoline, light motor trucks, diesel fuel, and liquefied petroleum gas also moved lower. Conversely, prices for primary basic organic chemicals jumped 7.2 percent. The indexes for chicken eggs, residential natural gas, and beef and veal also advanced.
Posted: March 14, 2018 Wednesday 08:30 AM