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PPI Archives - Shopfloor

Producer Prices Inched Down 0.1 Percent in July, with Year-Over-Year Growth Steady at 2.0 Percent

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The Bureau of Labor Statistics said that producer prices for final demand goods and services inched down 0.1 percent in July, offsetting the 0.1 percent gain seen in June. For manufacturers, producer prices for final demand goods were off by 0.1 percent in July after rising by 0.2 percent in June. Energy prices pulled back for the third straight month, down 0.3 percent, with food prices flat. On a year-over-year basis, final demand food and energy costs have risen 1.9 percent and 4.3 percent, respectively. Excluding food and energy, producer prices for final demand goods were also down 0.1 percent.

Overall, producer prices for final demand goods and services have increased 2.0 percent since July 2016, remaining steady with June’s rate but decelerating from April’s 2.5 percent year-over-year pace, which was the fastest pace since February 2012. Nonetheless, raw material costs have accelerated over the course of the past 12 months, as the year-over-year rate was zero percent one year ago. In a similar way, core producer prices – which exclude food, energy and trade services – have grown 1.9 percent year-over-year, slowing from 2.1 percent in the prior release but up from 1.0 percent in July 2016.

Producer Prices Edged up 0.1 Percent in June but Pulled Back Year-Over-Year to 2.0 Percent

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The Bureau of Labor Statistics said that producer prices for final demand goods and services edged up 0.1 percent in June, accelerating ever-so-slightly after being unchanged in May. For manufacturers, producer prices for final demand goods rose by 0.2 percent, rebounding from a decline of 0.1 percent in the prior release. The gain stemmed largely from increased food prices, up 1.2 percent, led by higher costs for dairy, grains and meats. At the same time, energy prices pulled back for the second straight month, down 0.6 percent. On a year-over-year basis, final demand food and energy costs have risen 1.2 percent and 4.3 percent, respectively. Excluding food and energy, producer prices for final demand goods were also up 0.1 percent.

Overall, producer prices for final demand goods and services have increased 2.0 percent since May 2016, continuing to ease from April’s 2.5 percent year-over-year pace, which was the fastest pace since February 2012. That represents a notable acceleration in inflationary pressures after being unchanged in August, and yet, this latest figure suggests that the pickup has stabilized, at least for now. In a similar way, core producer prices – which exclude food, energy and trade services – have grown 2.1 percent over the past 12 months, the same rate as seen in both April and May.

Producer Prices Were Unchanged in May

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The Bureau of Labor Statistics said that producer prices for final demand goods and services were unchanged in May, pulling back from a 0.5 percent gain in April. For manufacturers, producer prices for final demand goods edged down 0.1 percent in May, only slightly offsetting the April 0.7 percent increase. Both food and energy costs were lower, down 0.2 percent and 3.0 percent, respectively. On a year-over-year basis, final demand food and energy costs have risen 1.0 percent and 0.8 percent, respectively. Excluding food and energy, producer prices for final demand goods were up 0.1 percent.

Overall, producer prices for final demand goods and services have increased 2.4 percent since May 2016, easing a bit from April’s 2.5 percent year-over-year pace, which was the fastest pace since February 2012. That represents a notable acceleration in inflationary pressures after being unchanged in August, and yet, this latest figure suggests that the pickup has stabilized, at least for now. In a similar way, core producer prices – which exclude food, energy and trade services – have grown 2.1 percent over the past 12 months, the same rate as seen in April but up from 0.9 percent one year ago.

Year-Over-Year Growth in Producer Prices Rose to the Fastest Pace Since February 2012

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The Bureau of Labor Statistics said that producer prices for final demand goods and services increased 0.5 percent in April, bouncing back strongly after declining by 0.1 percent in March. For manufacturers, producer prices for final demand goods rose by 0.7 percent, boosted by strong gains in both food and energy costs, up 0.9 percent and 0.8 percent, respectively. On a year-over-year basis, final demand food and energy costs have risen 1.7 percent and 14.2 percent, respectively. It was second consecutive year-over-year increase in food prices for producers after declining in every month since February 2015 prior to that. Excluding food and energy, producer prices for final demand goods were up 0.3 percent.

Overall, producer prices for final demand goods and services have increased 2.5 percent since April 2016, its fastest pace since February 2012. That represents a notable acceleration in inflationary pressures after being unchanged in August. Meanwhile, core producer prices – which exclude food, energy and trade services – grew 2.1 percent year-over-year in April, up slightly from 1.8 percent in March. This will lend further credibility to the Federal Reserve’s current normalization schedule, which is currently expected to raise short-term interest rates two more times in 2017, with the next increase coming in at its June meeting.

Producer Prices Eased in March but Were Up 2.3 Percent Year-Over-Year, Highest in Five Years

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The Bureau of Labor Statistics said that producer prices for final demand goods and services edged down 0.1 percent in March, falling for the first time in seven months. For manufacturers, producer prices for final demand goods were also off by 0.1 percent, led lower by reduced energy costs, down 2.9 percent for the month. Still, on a year-over-year basis, final demand energy prices have risen 15.3 percent. At the same time, food prices jumped 0.9 percent in March, its strongest monthly gain since December. Higher costs for cooking oils, eggs, fruits, meats and vegetables were enough to offset lower prices for coffee, dairy products, grains, milled rice and oilseeds. Since March 2016, food prices have inched up 0.3 percent, its first positive year-over-year gain since February 2015.

Excluding food and energy, final demand goods prices for producers increased by 0.4 percent in March. Overall, producer prices for final demand goods and services have risen 2.3 percent since March 2016, its highest year-over-year rate since March 2012. Moreover, it represents a notable pickup in inflationary pressures after being unchanged in August. Meanwhile, core producer prices – which exclude food, energy and trade services – grew 1.75 percent year-over-year in March, up slightly from 1.7 percent in February. That year-over-year pace was the fastest rate since August 2014.

Producer Prices Jumped Significantly in January, Boosted by Higher Energy Costs

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Producer prices jumped 0.6 percent in January, its fastest monthly pace of growth since September 2012. For manufacturers, producer prices for final demand goods accelerated in the latest report, up 1.0 percent and increasing for the fifth straight month. This largely reflected a significant rise in energy costs, up 4.7 percent. In particular, gasoline prices were up 14.5 percent for producers in January, which was also coincidently the year-over-year growth rate.  At the same time, food prices were unchanged in January. Higher costs for dairy products, eggs, grains, pork and shortening and cooking oils were offset by lower prices for beef and veal, chickens, confectionary end products, fish and pasta products, among others. Despite the flat month, food prices have dropped 2.2 percent since January 2016. Read More

Producer Prices for Final Demand Goods Accelerated in December

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Producer prices increased 0.3 percent in December, extending the 0.4 percent gain seen in November. More importantly for manufacturers, producer prices for final demand goods accelerated in the latest report, up 0.7 percent in December. This reflected large monthly jumps in both energy and foods costs, up 2.6 percent and 0.7 percent, respectively. There were higher prices for beef, chicken, dairy products, eggs, fish and shellfish, pork and vegetables for the month. Still, food costs have been on a downward trend over the past two years, down 6.1 percent over the past 24 months. On the other hand, rising natural gas and gasoline prices helped push energy costs higher in December. Since December 2015, final demand energy prices have risen 6.1 percent, but to be fair, they have fallen 23.3 percent from levels seen three years ago.  Excluding food and energy, final demand goods prices for producers increased by 0.3 percent in December. Read More

Higher Food Costs Helped to Push Producer Prices Higher in November

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Producer prices increased 0.4 percent in November, bouncing back from being unchanged in October at growing at its fastest monthly pace since June. Digging into the data, producer prices for final demand goods rose for the third straight month, up 0.2 percent in November. A large jump in food costs, up 0.6 percent, helped to explain much of this boost, with energy prices edging down 0.3 percent. Still, food costs have been on a downward trend over the longer-term, down 2.6 percent over the past 12 months. On the other hand, energy prices have were virtually flat year-over-year, up just 0.2 percent. Excluding food and energy, final demand goods prices for producers increased by 0.2 percent in November. Read More

Producer Prices Were Unchanged in October, but Were Up 0.4 Percent for Final Demand Goods

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Producer prices were unchanged in October, slowing after a rebound in the September data. The flat growth in the headline number stemmed from reduced producer prices for final demand services, down 0.3 percent. In contrast, producer prices for final demand goods increased 0.4 percent in October, extending the 0.7 percent gain seen in September. Higher inflation for goods came largely from a jump in energy costs, up 2.5 percent; whereas, food prices were off by 0.8 percent. Food costs have been on a downward trend over the longer-term, down 3.5 percent over the past 12 months. On the other hand, energy prices have edged up 0.2 percent year-over-year. Read More

Producer Prices Ticked Higher in September, but with Inflation Largely Still in Check for Now

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Producer prices ticked higher in September, bouncing back from softness in the prior two months. The Bureau of Labor Statistics said that producer prices for final demand goods and services rose 0.3 percent in September, the first increase reading in three months. For final demand goods, food and energy prices were both higher, up 0.5 percent and 2.5 percent, respectively, but each were coming back from notable declines in both July and August. The longer-term trend has been negative for both. Food costs have decreased 3.4 percent over the past 12 months, with energy prices off by 2.4 percent year-over-year. Read More