Producer Price Index Month-Over-Month April 2020

  • PPI: -1.1%
  • 2020 Goods: -2.8%
  • Services: -0.4%
  • Energy: -17.3% 

Producer Price Index Month-Over-Month February 2021

  • April 2020 PPI: 0.5%
  • April 2020 Goods: 1.4%
  • April 2020 Services: 0.1%
  • Energy: 6.0%

Q: Why does Energy have such a small impact on the PPI?
A: The following chart explains. 

PPI Final Demand Weights 

PPI Final DEmand Percentage Weights 2021-02

Energy is 15.5% of goods but only 5.0% of the overall PPI. 

PPI Year-Over-Year 

PPI Final Demand Year-Over-Year NSA 2021-02


Producer Price Index Year-Over-Year April 2020

  • PPI: -1.5%
  • Goods: -5.2%
  • Services: +0.3%
  • Energy: -30.7%

Producer Price Index Year-Over-Year February 2021

  • PPI: 2.8%
  • Goods: 3.4%
  • Services: 2.5%
  • Energy: 5.5%

What's Going to Happen?

The year-over-year comparisons in March, April, and May are going to show huge percentage year-over-year jumps, especially April and May due to comparisons vs. the initial pandemic numbers in Spring of 2020.

Services will act as a bit of a stabilizer given they constitute 66% of the PPI, but the energy numbers are so huge they will have a very noticeable impact. 

Consumer Price Index Discussion

For the impact of Covid on the CPI, please see Inflation is Poised to Soar, 3% by June is "Almost Certain"


The Producer Price Index Jumps a Greater Than Expected 1.3 Percent

Economists expected the PPI to increase by 0.4 percent. They were not close.

Producer Price Inflation Lower Than Expected

The PPI and core PPI each rose 0.1% month-over-month. Economists expected a 0.2% rise in both.

Producer Price Inflation Weak and Below Expectations

The Producer Price Index missed expectations across the board: Even services have been weak.

Producer Price Inflation Flat, Well Under Consensus, Bond Yields Tumble

Economists expected the Producer Price Index would jump in July. Instead, the PPI was flat and bond yields tumbled.

Inflationistas Disappointed: Producer Price Index Flat, Services +0.3%, goods -0.5%

Those rooting for higher inflation were not happy with today’s PPI report that shows producer prices flat for the month vs an Econoday consensus of a 0.1 percent rise.

Producer Prices Unexpectedly Decline

The Producer Price Index (PPI) for final goods unexpectedly declined in July. The PPI fell 0.1% as did the core PPI which excludes food and energy. THe Econoday consensus expected a 0.1% gain.