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Producer Price Index rose 0.1% in November, ex Fd & Engy up 0.1%
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The Producer Price Index for final demand advanced 0.1 percent in November, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.3 percent in October and 0.4 percent in September. (See table A.) On an unadjusted basis, the final demand index increased 0.8 percent for the 12 months ended in November, the largest advance since moving up 1.1 percent for the 12 months ended in February.
In November, the rise in the final demand index can be traced to a 0.4-percent increase in prices for final demand goods. The index for final demand services was unchanged.
The index for final demand less foods, energy, and trade services advanced 0.1 percent in November, the seventh consecutive increase. For the 12 months ended in November, prices for final demand less foods, energy, and trade services moved up 0.9 percent, the largest rise since a 1.0-percent increase for the 12 months ended in March.
Final Demand
Final demand goods: The index for final demand goods rose 0.4 percent in November, the seventh consecutive advance. Nearly half of the broad-based November increase can be traced to prices for final demand energy, which moved up 1.2 percent. The indexes for final demand goods less foods and energy and for final demand foods rose 0.2 percent and 0.5 percent, respectively.
Product detail: In November, a major factor in the increase in prices for final demand goods was the index for diesel fuel, which advanced 8.4 percent. Prices for meats, processed young chickens, residential electric power, residential natural gas, and tobacco products also moved higher. In contrast, the gasoline index fell 1.9 percent. Prices for fresh fruits and melons and for pharmaceutical preparations also decreased.
Final demand services: The index for final demand services was unchanged in November after advancing 0.2 percent in October. In November, prices for final demand services less trade, transportation, and warehousing climbed 0.2 percent. Conversely, the indexes for final demand trade services and for final demand transportation and warehousing services decreased 0.3 percent and 0.9 percent, respectively. (Trade indexes measure changes in margins received by wholesalers and retailers.)
Product detail: In November, prices for outpatient care (partial) increased 0.4 percent. The indexes for apparel, jewelry, footwear, and accessories retailing; machinery and equipment parts and supplies wholesaling; truck transportation of freight; and chemicals and allied products wholesaling also moved higher. In contrast, margins for machinery and vehicle wholesaling fell 7.6 percent. The indexes for transportation of passengers (partial); fuels and lubricants retailing; hardware, building materials, and supplies retailing; and securities brokerage, dealing, and investment advice also decreased.
Posted: December 11, 2020 Friday 08:30 AM