December 2020 Producer Price Final Demand Continues To Show Modest Year-Over-Year Growth

The Producer Price Index (PPI) year-over-year inflation was unchanged at +0.8 %.

Analyst Opinion of Producer Prices

Year-over-year inflation pressures remain soft as this index is barely in expansion.

Here is what the BLS said in part:

The Producer Price Index for final demand increased 0.3 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This rise followed advances of 0.1 percent in November and 0.3 percent in October. (See table A.) On an unadjusted basis, the final demand index moved up 0.8 percent in 2020, after increasing 1.4 percent in 2019. In December, the advance in the final demand index can be traced to a 1.1-percent increase in prices for final demand goods. Conversely, the index for final demand services edged down 0.1 percent. Prices for final demand less foods, energy, and trade services rose 0.4 percent in December, the eighth consecutive advance. In 2020, the index for final demand less foods, energy, and trade services moved up 1.1 percent, following a 1.5-percent increase in 2019.

The PPI represents inflation pressure (or lack thereof) that migrates into consumer price.

The market had been expecting (from Econoday):

  Consensus Range Consensus Actual
PPI-Final Demand (PPI-FD) - M/M change 0.2 % to 0.5 % +0.3 % +0.3 %
PPI-FD - Y/Y change 0.6 % to 1.0 % +0.8 % +0.8 %
PPI-FD less food & energy (M/M change -core PPI) 0.1 % to 0.3 % +0.2 % +0.1 %
PPI-FD less food & energy - Y/Y change 1.3 % to 1.5 % +1.3 % +1.2 %
PPI-FD less food, energy & trade services - M/M change 0.2 % to 0.2 % +0.2 % +0.4 %
PPI-FD less food, energy & trade services - Y/Y change 0.9 % to 1.0 % +1.0 % +1.1 %

The producer price inflation breakdown:

category month-over-month change year-over-year change
final demand goods +1.1 %  
final demand services -0.1 %  
total final demand +0.3 % +0.8 %
processed goods for intermediate demand +1.5 % +1.3 %
unprocessed goods for intermediate demand +2.2 % +1.5 %
services for intermediate demand +0.4 % +1.6 %
1 2
View single page >> |

Disclaimer: No content is to be construed as investment advise and all content is provided for informational purposes only.The reader is solely responsible for determining whether any investment, ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.