PPI Percentage Weights 

I produced the above chart starting with a download of Producer Price Weights from the BLS.

The spreadsheet has over 1,500 items in 45 broad categories. I grouped any category with less than 1 percentage point weight into "other". 

PPI Components Weights List 

PPI Components List

Services

PPI Final Demand Top 6 Services

PPI Notes

  • Six of the top 10 PPI final demand components are services. 
  • Healthcare, Wholesale Trade, Retail Trade, Transportation, Professional, and Investment Services comprise 48.84% of the entire 45-category list of PPI components. 
  • Add in credit intermediation (#14) and Real Estate (#17) and the total is 52.27%.
  • Investment services, credit intermediation, and real estate services comprise 7.04% of the PPI vs 4.98% for fuels, related products, and power.

PPI vs CPI

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Healthcare Services are 17.75% of the PPI but only 6.97% of the CPI. 

The Fed and the BLS underweight healthcare costs in the CPI because someone else is footing the bill (corporations or the government via Medicare, Medicaid, or a state- or local-government sponsored plan).

Anyone buying their own insurance will tell you 6.97% is a ridiculous assessment of their consumer spending.

The Producer Price Index Jumps a Greater Than Expected 1.3 Percent

Yesterday, I reported The Producer Price Index Jumps a Greater Than Expected 1.3 Percent

Here is the line item that caught my eye: Two-thirds of the January advance in prices for final demand can be traced to a 1.3-percent rise in the index for final demand services

Curiously, One-fourth of the January advance in the index for final demand services can be traced to a 9.4-percent rise in prices for portfolio management.

As Reported, Consumer Price Inflation Is Lower Than Expected Once Again

Not that many people believe this, but As Reported, Consumer Price Inflation Is Lower Than Expected Once Again.

Mish

PPI Declines First Time Since August 2016

Producer prices unexpectedly declined in December. Trade services fell a steep 0.6 percent.

PPI Jumps Due To Hurricane Energy Impact

The Producer Price Index for final demand advanced 0.4 percent in September, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices moved up 0.2 percent in August and edged down 0.1 percent in July.

No Significant Price Pressures: PPI Underperforms Economists’ Expectations

The Producer Price Index (PPI) for final demand rose .2% in August vs an Econoday consensus expectation of 0.3%. Excluding food and energy, the PPI rose 0.1% vs an expectation of 0.2%.

PPI Jumps 0.6% in March: Goods Up 1.0%, Services Up 0.3%

The PPI rose 0.6% with 60% of the rise due to a 1.% rise in goods, and most of that energy related.

PPI for Goods and Services Diverge

The discrepancy between goods and services widened further this month as costs to produce good fell while services rose.

Curious September Energy Decline in CPI, With Crude and Gas Futures Rising

The BLS says the energy index declined 0.5 percent in September, but the price of crude rose. Overall the CPI rose 0.1%.

PPI Much Hotter Than Expected But Bond Yields Flat

The Producer Price Index jumped to 0.5% vs expectations of 0.1%. The bond market did not react one bit.

Import and Export Prices Surge on Rising Energy Prices

As with yesterday's Producer Price Report, a surge in import and export prices is energy related.

PPI Uneven Jump Hints at More Consumer Weakness, Trouble at Retailers

The BLS reported the Producer Price Index (PPI) for final demand rose 0.5%. This exceeded the Econoday consensus of 0.2% in a range of -0.2% to +0.3%. Details are interesting.