December Producer Price Index: Final Demand Up 9.7% YoY
This morning's release of the December Producer Price Index (PPI) for Finished Goods was down 0.5% month-over-month seasonally adjusted, down from a 1.1% increase last month. It is at 12.4% year-over-year, down from 13.6% last month, on a non-seasonally adjusted basis. Core Finished Goods (less food and energy) came in at 0.6% MoM, unchanged from the previous month and is up 6.5% YoY NSA.
The December PPI for Final Demand was at 0.2% month-over-month seasonally adjusted, down from a 1.0% increase last month. Investing.com MoM consensus forecasts for Final Demand were for 0.4% headline and 0.5% core.
Here is the summary of the news release on Final Demand:
The Producer Price Index for final demand increased 0.2 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This rise followed advances of 1.0 percent in November and 0.6 percent in October. (See table A.) On an unadjusted basis, final demand prices moved up 9.7 percent in 2021, the largest calendar-year increase since data were first calculated in 2010. More…
Also the BLS has decided to begin tracking PPI to three decimal points:
Effective with the release of November 2021 Producer Price Index (PPI) data, on December 14, 2021, the Bureau of Labor Statistics will publish interim index values for all preliminary PPI data, starting with values for August through October 2021. Within PPI, interim indexes are defined as recalculated indexes for the 3 months between the initial publication and final revision of PPI data. With this modification, data within the 3-month interim revision period will be updated and published on a monthly basis. This replaces the current policy of only publishing revised data once, when the data have been finalized 4 months after original publication. PPI data will continue to be finalized 4 months after initial publication.
The publication of interim index values will allow for greater transparency regarding PPI revisions, and will align PPI official index publication with Bureau of Economic Analysis use of PPI interim index data as an input to Gross Domestic Product calculations.