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Producer Price Index fell 0.1% in December, ex Fd & Engy up 0.1%
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The Producer Price Index for final demand fell 0.1 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.4 percent in both November and October. On an unadjusted basis, the final demand index climbed 2.6 percent in 2017 after a 1.7-percent rise in 2016.
Most of the December decline in the final demand index is attributable to a 0.2-percent decrease in prices for final demand services. The index for final demand goods was unchanged.
Prices for final demand less foods, energy, and trade services edged up 0.1 percent in December after rising 0.4 percent in November. In 2017, the index for final demand less foods, energy, and trade services climbed 2.3 percent following a 1.8-percent advance in 2016.
Final Demand
Final demand services: The index for final demand services moved down 0.2 percent in December following nine consecutive increases. Most of the decrease can be traced to a 0.6-percent decline in margins for final demand trade services. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand transportation and warehousing services fell 0.4 percent. Conversely, the index for final demand services less trade, transportation, and warehousing inched up 0.1 percent.
Product detail: A major factor in the December decline in prices for final demand services was the index for automotive fuels and lubricants retailing, which fell 10.7 percent. The indexes for loan services (partial); airline passenger services; apparel, footwear, and accessories retailing; legal services; and health, beauty, and optical goods retailing also moved lower. In contrast, prices for inpatient care advanced 0.7 percent. The indexes for truck transportation of freight and apparel wholesaling also increased.
Final demand goods: Prices for final demand goods were unchanged in December following a 1.0 percent increase in November. The index for final demand less foods and energy advanced 0.2 percent. Conversely, prices for final demand foods declined 0.7 percent. The index for final demand energy was unchanged.
Product detail: In December, prices for basic organic chemicals advanced 3.9 percent. The indexes for jet fuel, diesel fuel, home heating oil, and processed young chickens also moved higher. In contrast, prices for beef and veal fell 6.3 percent. The indexes for gasoline, fresh and dry vegetables, liquefied petroleum gas, and turbines and turbine generator sets also moved lower.
Posted: January 11, 2018 Thursday 08:30 AM