Keeping you up to date on the latest data releases.
- Producer Price Index
The Producer Price Index (PPI) for finished goods slipped down at an annualized rate of 1.2 percent in December, following a 3.2 percent increase in November. The headline decrease came as declining producer food and energy prices (each falling in excess of 8.0 percent) more than offset gains elsewhere in the basket. Excluding food and energy prices, the “core” PPI jumped up 4.1 percent in December, its largest monthly gain since July. Still, over the past three months the annualized growth rate in the core PPI is just 1.8 percent, compared to its longer-term (12-month) growth rate of 3.0 percent. Further back on the production line, pricing pressure continued to ebb, as core intermediate goods prices fell for the third consecutive time (down 5.5 percent in December) and core crude goods were flat, following fairly sharp declines over the previous two months. On a year-over-year basis, core intermediate goods are up 4.1 percent. The 12-month growth rate in core crude goods, after surging to a series high of 50 percent in mid-2010, stands at just 3.3 percent in December.