April Producer Price Index: Final Demand Up 0.5%
Today's release of the April Producer Price Index (PPI) for Final Demand came in at 0.5% month-over-month seasonally adjusted, up from last month's -0.1%. It is at 2.5% year-over-year, up from 2.3% last month, on a non-seasonally adjusted basis. Core Final Demand (less food and energy) came in at 0.4% MoM, up from 0.0% the previous month and is up 1.9% YoY. Investing.com MoM consensus forecasts were for 0.2% headline and 0.2% core.
Here is the summary of the news release on Final Demand:
The Producer Price Index for final demand advanced 0.5 percent in April, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices edged down 0.1 percent in March and climbed 0.3 percent in February. (See table A.) On an unadjusted basis, the final demand index rose 2.5 percent for the 12 months ended April 2017, the largest increase since moving up 2.8 percent for the 12 months ended February 2012.
In April, almost two-thirds of the advance in the final demand index is attributable to prices for final demand services, which moved up 0.4 percent. The index for final demand goods climbed 0.5 percent.
Prices for final demand less foods, energy, and trade services increased 0.7 percent in April. For the 12 months ended in April, the index for final demand less foods, energy, and trade services climbed 2.1 percent. More…
Finished Goods: Headline and Core
The BLS shifted its focus to its new "Final Demand" series in 2014, a shift we support. However, the data for these series are only constructed back to November 2009 for Headline and April 2010 for Core. Since our focus is on longer-term trends, we continue to track the legacy Producer Price Index for Finished Goods, which the BLS also includes in their monthly updates.
As this overlay illustrates, the Final Demand and Finished Goods indexes are highly correlated.
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