The BLS Producer Price Report for December 2021 shows the strongest price increases since the series began in 2010.
- The Producer Price Index for final demand increased 0.2 percent in December. This rise followed advances of 1.0 percent in November and 0.6 percent in October.
- On an unadjusted basis, final demand prices moved up 9.7 percent in 2021, the largest calendar-year increase since data were first calculated in 2010.
- In December, the advance in the final demand index can be traced to a 0.5-percent increase in prices for final demand services.
- Conversely, the index for final demand goods decreased 0.4 percent.
- Prices for final demand less foods, energy, and trade services rose 0.4 percent in December following a 0.8-percent increase in November.
- In 2021, the index for final demand less foods, energy, and trade services moved up 6.9 percent, following a 1.3-percent advance in 2020.
PPI Final Demand vs CPI
Final Demand Services
- Prices for final demand services rose 0.5 percent in December following a 0.9- percent increase in November.
- Over half of the broad-based advance in December is attributable to margins for final demand trade services, which moved up 0.8 percent.
- Prices for final demand services less trade, transportation, and warehousing and for final demand transportation and warehousing services rose 0.2 percent and 1.7 percent, respectively.
- Over a quarter of the December increase in the index for final demand services can be attributed to margins for fuels and lubricants retailing, which rose 13.0 percent. T
- Margins for automobile and automobile parts retailing decreased 2.7 percent.
Final Demand Goods
- The index for final demand goods moved down 0.4 percent in December, the first decrease since falling 2.8 percent in April 2020.
- Leading the December decline, prices for final demand energy dropped 3.3 percent.
- The index for final demand foods fell 0.6 percent.
- Prices for final demand goods less foods and energy advanced 0.5 percent.
- A major factor in the December decrease in prices for final demand goods was the index for gasoline, which moved down 6.1 percent.
- Prices for meats, gas fuels, fresh and dry vegetables, diesel fuel, and primary basic organic chemicals also declined. In contrast, the index for ethanol increased 6.4 percent.
- Prices for residential electric power and for chicken eggs also moved higher.
Three Related Articles
- Real and Unreal Inflation: Workers Lost Money 9 out of 12 Months in 2021
- Inflation is Up 7% in December Reaches Fastest Pace Since 1982
- Homeownership Dreams of Zoomers and Millennials Shattered by Prices
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