Producer Price Index December release November 2023 Data

The BLS has released the November Producer Price Index Report.  (historical releases)

The Producer Price Index for final demand was unchanged in November, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices decreased 0.4 percent in October and rose 0.4 percent in September. (See table A.) On an unadjusted basis, the index for final demand increased 0.9 percent for the 12 months ended in November.

In November, the indexes for both final demand goods and for final demand services were unchanged. 

Final demand goods: The index for final demand goods was unchanged in November after dropping 1.4 percent in October. In November, price increases of 0.6 percent for final demand foods and 0.2 percent for final demand goods less foods and energy offset a 1.2-percent decrease in the index for final demand energy.

Let's revisit that paragraph. What did the -1.2% decrease in the index for final demand energy... offset?

Within final demand goods in November, prices for chicken eggs jumped 58.8 percent. The indexes for fresh fruits and melons, utility natural gas, electric power, and carbon steel scrap also moved higher. In contrast, prices for gasoline fell 4.1 percent.

So gasoline (-4.1%), which is typically moving into seasonal lows, is the reason for that -1.2% decrease, which offsets a bunch of rises in food (+0.6%) and other energy components. 

Not to nitpick, but if gasoline is having that impact, and is moving into seasonal lows, which might continue through the December release... could reverse beginning after Christmas, just like last year.

For those of us that like to eat food, that annualized 7.2% increase in food is going to weigh on the budget of many of us, unless we decide to eat less and lose "weight".