Keeping you up to date on the latest data releases.
- Producer Price Index
The Producer Price Index (PPI), pulled down by a sharp decline in energy prices, fell at an annualized rate of 8.7 percent in November, following a more modest (and also energy price-related) decline of 1.8 percent in October. Over the past 12 months, the PPI is up just 1.5 percent, well below its long-run (10-year) annualized growth rate of 3.4 percent. Perhaps as a nascent sign of the summer drought in the Midwest, food prices jumped up 17.3 percent in November, following a relatively sanguine 12-month period where food prices only increased 2.2 percent. Excluding volatile food and energy prices, the “core” PPI edged up 1.3 percent during the month. After a modest decline in October and a flat reading in September, the three-month annualized growth rate in the core PPI stands at −0.4 percent—a marked deceleration compared to its year-over-year growth rate of 2.2 percent. At earlier stages of production there was a dearth of price pressure, as core intermediate goods prices were flat and core crude prices edged up just 0.9 percent.