December Producer Price Index: Finished Goods at 8.8% YoY

This article was originally written by Doug Short. From 2016-2022, it was improved upon and updated by Jill Mislinski. Starting in January 2023, AP Charts pages will be maintained by Jennifer Nash at Advisor Perspectives/VettaFi.

This morning's release of the December producer price index (PPI) for finished goods was down 1.5% month-over-month seasonally adjusted, and down from a 0.2% increase last month. It is up 8.8% year-over-year, down from a 10.6% increase last month, on a seasonally adjusted basis.

The December PPI for final demand was at -0.5% month-over-month seasonally adjusted, down from last month's 0.2% increase. MoM consensus forecasts for final demand headline was -0.1%.

Here is the summary of the news release on final demand:

The Producer Price Index for final demand declined 0.5 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.2 percent in November and 0.4 percent in October. (See table A.) On an unadjusted basis, the index for final demand increased 6.2 percent in 2022 after rising 10.0 percent in 2021.

In December, the decrease in the final demand index can be attributed to a 1.6-percent decline in prices for final demand goods. In contrast, the index for final demand services rose 0.1 percent.

Prices for final demand less foods, energy, and trade services edged up 0.1 percent in December after increasing 0.3 percent in November. The index for final demand less foods, energy, and trade services advanced 4.6 percent in 2022 following a 7.0-percent rise in 2021. [More...]