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Producer Prices Rise the Most Year-Over-Year Since the Series Stated in 2010

The PPI for final demand rose the most on record but the bond market yawned.
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PPI Final Demand Year-Over-Year NSA 2021-11

The Producer Price Index (PPI) is up 9.6% from a year ago according to the BLS. That's the most in the history of the data. 

PPI Month-Over-Month

PPI Final Demand Month-Over-Month 2021-11

PPI Key Details 

  • The Producer Price Index for final demand increased 0.8 percent in November.
  • Final demand prices moved up 0.6 percent in each of the 3 prior months. 
  • On an unadjusted basis, the final demand index rose 9.6 percent for the 12 months ended in November, the largest advance since 12-month data were first calculated in November 2010. 
  • In November, the index for final demand services rose 0.7 percent and prices for final demand goods increased 1.2 percent. 
  • The index for final demand less foods, energy, and trade services moved up 0.7 percent in November, the largest rise since climbing 0.8 percent in July. 
  • For the 12 months ended in November, prices for final demand less foods, energy, and trade services increased 6.9 percent, the largest advance since 12-month data were first calculated in August 2014.  

Year-Over-Year Synopsis 

  • Energy: Up 43.6%
  • Goods: Up 14.9%
  • Overall: Up 9.6%
  • Services: Up 7.1%

PPI Notes

Energy is a small subset of goods. And despite goods being up 14.9%, the overall PPI is only up 9.6%.

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Energy is a relatively small component of goods, and goods have a much smaller weight in the PPI than services.

Bond Market Yawns

Bonds barely moved today with yields fluctuating between +- two basis points, with a basis point being 1/100th of a percentage point.

This report was already factored in to the price of bonds.

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