This morning, the BLS reported Producer Price Indexes for February.

  • The Producer Price Index for final demand edged up 0.1 percent in February, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices fell 0.1 percent in both January and December.
  • On an unadjusted basis, the final demand index moved up 1.9 percent for the 12 months ended in February.
  • In February, the increase in the final demand index can be traced to a 0.4-percent rise 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 inched up 0.1 percent in February following a 0.2-percent advance in January. For the 12 months ended in February, prices for final demand less foods, energy, and trade services climbed 2.3 percent.

Final Demand Goods

The index for final demand goods increased 0.4 percent in February following three consecutive declines. Over 80 percent of the advance can be traced to prices for final demand energy, which rose 1.8 percent. The index for final demand goods less foods and energy edged up 0.1 percent. Conversely, prices for final demand foods fell 0.3 percent.

Forty percent of the increase in the index for final demand goods is attributable to a 3.3-percent rise in gasoline prices. The indexes for diesel fuel, jet fuel, integrated microcircuits, residual fuels, and beef and veal also moved higher. In contrast, prices for fresh and dry vegetables declined 12.8 percent. The indexes for iron and steel scrap and for residential natural gas also decreased.

Final Demand Services

Prices for final demand services were unchanged in February following a 0.3-percent rise in January. In February, a 0.3-percent increase in the index for final demand services less trade, transportation, and warehousing offset a decline of 0.4 percent in margins for final demand trade services and a 1.3-percent decrease in the index for final demand transportation and warehousing services.

RECOMMENDED ARTICLES

In February, prices for traveler accommodation services rose 5.3 percent. The indexes for machinery, equipment, parts, and supplies wholesaling; food retailing; portfolio management; and legal services also moved higher. Conversely, margins for fuels and lubricants retailing fell 10.5 percent. The indexes for apparel, jewelry, footwear, and accessories retailing; airline passenger services; health, beauty, and optical goods retailing; and nonresidential real estate services also declined.

Consensus Estimates

Image placeholder title

Comments

The numbers were below Econoday consensus across the board, three places. Unlike the CPI, consumer prices, PPI numbers seem reasonably believable.

In isolation, there is no pressure on the Fed either way from these numbers.

Mike "Mish" Shedlock

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 Weak and Below Expectations

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

CPI Benign at 0.2%, Core CPI Lower Than Expected 0.1%: What Do You Believe?

The CPI came in at 0.2% meeting economists expectations. Core CPI came in at 0.1% under economists expectations of 0.2%.

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.

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.

Producer Price Inflation is Unexpectedly Negative, Huge Intermediate Declines

The Producer Price Indexes for goods and services both unexpectedly declined in September.

Forecasters Miss Inflation Targets By a Mile: Steep Decline in Ag Export Prices

The consensus expected import prices to rise by 0.7% and exports by 0.5%. Instead, both prices rose by 0.2%.

Import Prices Unexpectedly Drop 0.6%, Most in 18 Months: Export Prices Drop 0.1%

Import prices fell 0.6%. Economists expected a 0.1% decline. Export prices fell 0.1%. Economists expected a 0.2% rise.

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%.