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producer prices Archives - Shopfloor

Producer Prices Inched Down 0.1 Percent in December, with Modest 2.2 Percent Year-Over-Year Core Inflation

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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 December, declining for the first time since August 2016. For manufacturers, producer prices for final demand goods were unchanged in December, pausing after jumping 1.0 percent in November. More than anything, this reflected flatness in energy prices, which had increased by 4.6 percent in the prior report. This was largely consistent with recent observations in the spot price for West Texas intermediate (WTI) crude oil, which increased from an average of $51.58 in October to $56.64 in November to $57.88 in December. (Note that WTI prices have increased significantly since then, with a spot price of $64.45 this morning.)

Meanwhile, food prices were off by 0.7 percent in December. On a year-over-year basis, final demand food and energy costs have risen 1.9 percent and 10.3 percent, respectively. Excluding food and energy, producer prices for final demand goods were up by 0.2 percent in December, increasing for the fifth consecutive month.   Read More

Producer Prices Rose 0.4 Percent in November for the Third Straight Month, or 3.0 Percent Year-Over-Year

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The Bureau of Labor Statistics said that producer prices for final demand goods and services rose by 0.4 percent in November for the third straight month. For manufacturers, producer prices for final demand goods jumped 1.0 percent in November, the fastest monthly pace since January. The gain in the latest data stemmed largely from a sharp acceleration in energy prices, up 4.6 percent in November after being unchanged in October. The increase in the spot price for West Texas intermediate crude oil over this time frame help to illustrate this rise, up from $50.59 on October 2 to $57.40 on November 30. Meanwhile, food prices were up by a more modest 0.3 percent in November. On a year-over-year basis, final demand food and energy costs have risen 3.5 percent and 12.4 percent, respectively. Excluding food and energy, producer prices for final demand goods were up by 0.3 percent in November, also for the third consecutive month.   Read More

Producer Prices Rose by 0.4 Percent in October for the Second Straight Month

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The Bureau of Labor Statistics said that producer prices for final demand goods and services rose by 0.4 percent in October for the second straight month. For manufacturers, producer prices for final demand goods were up by 0.2 percent for the third consecutive release. The gain in October stemmed largely from an acceleration in food prices, up 0.5 percent and its fastest monthly increase since June. On the other hand, energy costs were unchanged in October following robust hurricane-related gains in both August and September. On a year-over-year basis, final demand food and energy costs have risen 2.6 percent and 7.6 percent, respectively. Excluding food and energy, producer prices for final demand goods were up by 0.3 percent in October.

Overall, producer prices for final demand goods and services have increased 2.7 percent since October 2016, up from 2.5 percent year-over-year last month and a pace not seen since February 2012. Raw material costs have accelerated over the course of the past 12 months, as the year-over-year rate was 1.2 percent one year ago. Nonetheless, core producer prices – which exclude food, energy and trade services – continue to be modest at 2.2 percent, up from 2.1 percent in September. For comparison purposes, core producer prices were 1.6 percent year-over-year in October 2016.

Producer Prices Rose by 0.4 Percent in September on Higher Energy Costs

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The Bureau of Labor Statistics said that producer prices for final demand goods and services rose by 0.4 percent in September, its fastest pace since April. For manufacturers, producer prices for final demand goods were up by 0.2 percent for the second straight release. The gain in September stemmed largely from an acceleration in energy prices, up 3.4 percent, extending the 3.3 percent gain seen in August. Indeed, the cost of West Texas intermediate crude rose from $47.26 per barrel on August 31 to $51.67 a barrel on September 29, helping to illustrate the recent increases in energy costs for producers. A fair share of the pickup in energy prices stem from recent hurricanes, perhaps making them transitory in nature. Read More

Producer Prices Rose by 0.2 Percent in August

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The Bureau of Labor Statistics said that producer prices for final demand goods and services rose by 0.2 percent in August, bouncing back from a decline of 0.1 percent in July. For manufacturers, producer prices for final demand goods were also up by 0.2 percent after being flat in the prior release. The gain in August stemmed largely from an acceleration in energy prices, up 3.3 percent, the first monthly increases since April. Those rises were enough to offset a 1.3 percent decrease in food prices for the month. On a year-over-year basis, final demand food and energy costs have risen 1.8 percent and 8.6 percent, respectively. Excluding food and energy, producer prices for final demand goods were also up by 0.2 percent.   Read More

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.

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