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Producer Price Index decreased 0.1% in December 2023, ex Fd & Engy unch%
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The Producer Price Index for final demand fell 0.1 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices moved down 0.1 percent in November and 0.4 percent in October. On an unadjusted basis, the index for final demand rose 1.0 percent in 2023 after increasing 6.4 percent in 2022.
The December decrease in the index for final demand is attributable to a 0.4-percent drop in prices for final demand goods. The index for final demand services was unchanged.
The index for final demand less foods, energy, and trade services rose 0.2 percent in December after edging up 0.1 percent in both November and October. Prices for final demand less foods, energy, and trade services climbed 2.5 percent in 2023 following a 4.7-percent increase in 2022.
Final Demand
Final demand goods: The index for final demand goods fell 0.4 percent in December, the third consecutive decline. In December, nearly 60 percent of the decrease can be traced to a 1.2-percent drop in prices for final demand energy. The index for final demand foods moved down 0.9 percent, while prices for final demand goods less foods and energy were unchanged.
Product detail: In December, half of the decrease in the index for final demand goods is attributable to prices for diesel fuel, which dropped 12.4 percent. The indexes for jet fuel; eggs for fresh use; non-carbonated soft drinks; passenger cars; and hay, hayseeds, and oilseeds also moved lower. In contrast, prices for gasoline rose 2.1 percent. The indexes for carbonated soft drinks and for nonferrous scrap also increased.
Final demand services: The index for final demand services remained unchanged in December, the same as in both November and October. In December, prices for final demand services less trade, transportation, and warehousing rose 0.4 percent. Conversely, the indexes for final demand trade services and for final demand transportation and warehousing services fell 0.8 percent and 0.4 percent, respectively. (Trade indexes measure changes in margins received by wholesalers and retailers.)
Product detail: Within the index for final demand services in December, prices for securities brokerage, dealing, and investment advice increased 3.3 percent. The indexes for consumer loans (partial), application software publishing, airline passenger services, and fuels and lubricants retailing also moved higher. In contrast, margins for machinery and vehicle wholesaling decreased 5.5 percent. The indexes for guestroom rental, long-distance motor carrying, automobiles and parts retailing, and apparel wholesaling also fell.
Posted: January 12, 2024 Friday 08:30 AM