Keeping you up to date on the latest data releases.
- Producer Price Index
The Producer Price Index (PPI), slipped down at an annualized rate of 2.4 percent in December, its third consecutive decline. In contrast to the previous two months, the overall decline was largely due to a decline in finished consumer foods, which fell 10.6 percent in December (though this was after a 17.3 percent gain in November). Energy prices still declined, falling 3.1 percent, though much less severely than in November (down 43 percent). Over the past 12 months, the PPI is up a mere 1.3 percent, well below its long-run (10-year) annualized growth rate of 3.4 percent. Excluding volatile food and energy prices, the “core” PPI edged up 0.7 percent during the month and is roughly flat over the past three months, decelerating markedly from its year-over-year growth rate of 2.0 percent. At earlier stages of production, price pressure was relatively modest with core intermediate goods prices rising 2.5 percent and volatile core crude prices increasing 14.6 percent.