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Producer Price Index edged up 0.1% in December, ex Fd & Engy up 0.1%
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The Producer Price Index for final demand edged up 0.1 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices were unchanged in November and rose 0.4 percent in October. (See table A.) On an unadjusted basis, the final demand index moved up 1.3 percent in 2019, after a 2.6-percent advance in 2018.
The December increase in the final demand index was the result of a 0.3-percent rise in prices for final demand goods. The index for final demand services was unchanged.
Prices for final demand less foods, energy, and trade services inched up 0.1 percent in December following no change in November. In 2019, the index for final demand less foods, energy, and trade services climbed 1.5 percent after advancing 2.8 percent in 2018.
Final Demand
Final demand goods: The index for final demand goods rose 0.3 percent in December, the same as in November. Most of the increase in December can be traced to a 1.5-percent advance in prices for final demand energy. The index for final demand goods less foods and energy edged up 0.1 percent. In contrast, prices for final demand foods moved down 0.2 percent.
Product detail: Over 60 percent of the December increase in the index for final demand goods can be attributed to a 3.7-percent advance in gasoline prices. The indexes for diesel fuel, fresh fruits and melons, carbon steel scrap, residential electric power, and pork also moved higher. Conversely, prices for beef and veal fell 7.0 percent. The indexes for jet fuel and for plastic resins and materials also declined.
Final demand services: Prices for final demand services were unchanged in December following a 0.3-percent decrease in November. In December, a 2.7-percent advance in the index for final demand transportation and warehousing services offset a 0.3-percent decline in margins for final demand trade services and a 0.1-percent decrease in the index for final demand services less trade, transportation, and warehousing. (Trade indexes measure changes in margins received by wholesalers and retailers.)
Product detail: In December, prices for transportation of passengers (partial) jumped 8.5 percent. The indexes for machinery and vehicle wholesaling; machinery and equipment parts and supplies wholesaling; health, beauty, and optical goods retailing; and portfolio management also increased. In contrast, margins for apparel, jewelry, footwear, and accessories retailing declined 3.7 percent. The indexes for chemicals and allied products wholesaling, guestroom rental, fuels and lubricants retailing, and professional and commercial equipment wholesaling also moved lower.
Posted: January 15, 2020 Wednesday 08:30 AM