The Producer Price Index Comes in Hotter Than Expected

PPI advances 0.7% in January; goods rise 1.2%, services increase 0.4% Inflation Still High ,but the Trend is Down

the staff of the Ridgewood blog

Washington DC, the Producer Price Index for final demand increased 0.7 percent in January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices declined 0.2 percent in December 2022 and advanced 0.3 percent in November.

On an unadjusted basis, the index for final demand rose 6.0 percent for the 12 months ended January 2023. In January, a 1.2-percent rise in prices for final demand goods led the advance in the final demand index. Prices for final demand services also moved higher, increasing 0.4 percent.

The index for final demand less foods, energy, and trade services rose 0.6 percent in January 2023, the largest advance since moving up 0.9 percent in March 2022. For the 12 months ended in January 2023, prices for final demand less foods, energy, and trade services increased 4.5 percent.