- Japan: Index of Business Conditions (Feb-Final), Electric Power Generated (Jan)
- Spain: Services Sector Activity, New Orders and Turnovers (Feb)
- Finland: PPI, Domestic Supply Prices (Mar)
- US: NABE Business Conditions Survey (Q1)
- Indonesia: Non-Oil and Gas Trade (Feb); Taiwan: Labor Market (Mar)
- Egypt: IP (Feb)
- more updates...
Economy in Brief
Fresh Six-Year PMI Highs for Euro Area
The 'fresh six-year high' is a pleasant surprise that continues, but...
Philadelphia Fed Factory Conditions Soften
The Philadelphia Fed reported that its General Factory Sector Business Conditions Index fell to 22.0 during April...
U.S. Leading Economic Indicators Suggest Continued Expansion
The Conference Board's Composite Index of Leading Economic Indicators increased 0.4% (3.5% y/y) during March...
U.S. Initial Unemployment Insurance Applications Increase
Initial unemployment claims for unemployment insurance rose to 244,000 during the week ended April 15 (-5.1% y/y)...
Japan's 'Trade Trends' Stabilize on an Unstable Foundation
Japan trade trends, broadly considered, seem to be stabilizing...
U.S. Mortgage Loan Applications Fall
The MBA total Mortgage Applications Volume Index declined 1.8% last week (-24.9% y/y)...
by Tom Moeller February 14, 2017
The headline Final Demand Producer Price Index increased 0.6% during January (1.6% y/y) after a 0.2% December gain, revised from 0.3%. The rise was the largest since September 2012 and exceeded expectations for a 0.3% increase in the Action Economics Forecast Survey. The PPI excluding food and energy rose 0.4% (1.2% y/y) following a 0.1% uptick, revised from 0.2%. It was the largest gain since June 2015. A 0.2% rise had been expected.
Prices of trade services jumped 0.9% (0.1% y/y) following no change during December. An updated measure of "core" PPI inflation, final demand prices excluding food, energy, and trade services prices, increased 0.2% (1.6% y/y) following a 0.1% December rise.
Final demand goods prices jumped 1.0% (3.1% y/y), the strongest rise since May 2015. It reflected a 4.7% increase (14.0% y/y) in energy prices which followed 1.8% gain. This rise was accompanied by no change (-2.2 % y/y) in food prices, which followed two months of 0.5% increase.
Nondurable goods prices excluding food & energy strengthened 0.5% (3.3% y/y) following a 0.1% rise. Finished durable goods prices eased 0.1% (+1.1% y/y) following a 0.1% dip. Private capital goods prices gained 0.1% (0.9% y/y) after improving 0.2%.
Final demand energy prices increased 4.7% (14.5% y/y) as gasoline prices strengthened 12.9% (32.5% y/y). Home heating oil prices gained 14.5% (52.6% y/y), and natural gas prices improved 2.7% (10.3% y/y). Food prices remained unchanged (-2.2% y/y). Beef & veal prices declined 7.2% (-8.1% y/y) and fruit & melon prices eased 0.1% (-4.7% y/y). Egg prices fell by one-third (-27.5% y/y), but bakery product prices gained 0.2% (0.5% y/y). Pork prices increased 5.4% (7.7% y/y), and dairy product prices rose 1.0% (5.0% y/y).
Prices of final demand for services gained 0.3% (0.8% y/y) following a 0.1% uptick. Trade services prices increased 0.9% (0.1% y/y) following no change in December. Prices for transportation of private passengers recovered 3.6% (2.3% y/y) after a 1.7% fall, while transportation & warehousing costs increased 0.4% (0.7% y/y).
Final demand construction costs increased 0.3% (1.3% y/y) following a 0.1% dip.
Prices of processed goods for intermediate demand surged 1.1% (3.8% y/y), the strongest rise since February 2013.
The PPI data are contained in Haver's USECON database with further detail in PPI and PPIR. The expectations figures are available in the AS1REPNA database.
Semiannual Monetary Policy Report to the Congress by Fed Chair Janet L. Yellen is available here.
|Producer Price Index (SA, %)||Jan||Dec||Nov||Jan Y/Y||2016||2015||2014|
|Excluding Food & Energy||0.4||0.1||0.5||1.2||1.2||0.8||1.7|
|Excluding Food, Energy & Trade Services||0.2||0.1||0.2||1.6||1.2||0.6||1.2|
|Goods Excluding Food & Energy||0.4||0.3||0.2||2.1||0.8||0.4||1.5|
|Intermediate Demand - Processed Goods||1.1||0.4||0.3||3.8||-3.0||-6.9||0.6|