It's been awhile since last post, as I have been very busy.
First up, the CPI report. My personal CPI was 2.4%, which matched the CPI-U. The CPI-W edged up to 2.2%, and the forecast of COLA jumped up quite a bit.
It's been awhile since last post, as I have been very busy.
First up, the CPI report. My personal CPI was 2.4%, which matched the CPI-U. The CPI-W edged up to 2.2%, and the forecast of COLA jumped up quite a bit.
The Producer Price Index was released this morning and indicated an upturn.
Note that I did not revise the December, 2024 final demand, as did the BLS. Yes, December was revised upward to 3.5%. https://www.bls.gov/news.release/archives/ppi_01142025.htm
The nervous nellies will scream inflation is roaring back. Maybe so, but it will not repeat the horrors of 2021~2022. How can I say that? Once you understand the causes, the answer becomes easy.
The BLS has released the November 2024 Producer Price Index Report for the month of October. (historical releases)
The Producer Price Index for final demand rose 0.4 percent in November, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices increased 0.3 percent in October and 0.2 percent in September. (See table A.) On an unadjusted basis, the index for final demand advanced 3.0 percent for the 12 months ended in November, the largest rise since moving up 4.7 percent for the 12 months ended February 2023.
In November, nearly 60 percent of the broad-based rise in final demand prices can be attributed to a 0.7-percent increase in the index for final demand goods. Prices for final demand services moved up 0.2 percent.
The BLS has released the November 2024 Producer Price Index Report for the month of October. (historical releases)
The Producer Price Index for final demand increased 0.2 percent in October, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.1 percent in September and 0.2 percent in August. (See table A.) On an unadjusted basis, the index for final demand moved up 2.4 percent for the 12 months ended in October.
In October, most of the rise in final demand prices can be traced to a 0.3-percent advance in the index for final demand services. Prices for final demand goods inched up 0.1 percent.
The index for final demand less foods, energy, and trade services increased 0.3 percent in October after moving up 0.1 percent in September. For the 12 months ended in October, prices for final demand less foods, energy, and trade services rose 3.5 percent
The BLS has released the October 2024 Producer Price Index Report for the month of September. (historical releases)
The Producer Price Index for final demand was unchanged in September, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.2 percent in August and were unchanged in July. (See table A.) On an unadjusted basis, the index for final demand rose 1.8 percent for the 12 months ended in September.
Within final demand in September, a 0.2-percent increase in the index for final demand services offset a 0.2-percent decline in prices for final demand goods.
The BLS has released the September 2024 Producer Price Index Report for the month of August. (historical releases)
The Producer Price Index for final demand increased 0.2 percent in August, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices were unchanged in July and rose 0.2 percent in June. (See table A.) On an unadjusted basis, the index for final demand advanced 1.7 percent for the 12 months ended in August.
The August rise in the index for final demand can be traced to a 0.4-percent increase in prices for final demand services. The index for final demand goods was unchanged.
The BLS has released the August, 2024 Producer Price Index Report for the month of July. (historical releases)
The forecast was +2.3% year over year. Which can be done by rounding down +2.27%, and voila +2.2%... or softer than forecast. The month to month was forecast at +0.2%, which can be achieved by revising the months of March, through June... UPWARD.
Using the prior month's published data and comparing to this month... yields an advance of +0.18% which could be rounded down to +0.1%.
It is not uncommon for data to be revised, which is why I download all the reports. I do get suspicious, but can prove nothing.
So (with all revisions)...
The BLS has released the July, 2024 Producer Price Index Report for the month of June. (historical releases)
The Producer Price Index for final demand advanced 0.2 percent in June, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices were unchanged in May and increased 0.5 percent in April. (See table A.) On an unadjusted basis, the index for final demand rose 2.6 percent for the 12 months ended in June, the largest advance since moving up 2.7 percent for the 12 months ended March 2023. [emphasis added]
Product detail: Over 60 percent of the June decrease in the index for final demand goods can be traced to a 5.8-percent decline in prices for gasoline. The indexes for processed poultry, residential electric power, diesel fuel, jet fuel, and fresh and dry vegetables also moved lower. Conversely, prices for chicken eggs increased 55.4 percent. The indexes for residential natural gas and for aluminum base scrap also advanced.
The BLS has released the May, 2024 Producer Price Index Report. (historical releases)
The Producer Price Index for final demand declined 0.2 percent in May, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices increased 0.5 percent in April and edged down 0.1 percent in March. (See table A.) On an unadjusted basis, the index for final demand advanced 2.2 percent for the 12 months ended in May.
The May decrease in final demand prices can be attributed to a 0.8-percent decline in the index for final demand goods. Prices for final demand services were unchanged.
Prices for final demand less foods, energy, and trade services were unchanged in May following a 0.5-percent increase in April. For the 12 months ended in May, the index for final demand less foods, energy, and trade services rose 3.2 percent.
PPI Final Demand...
The BLS has released the April, 2024 Producer Price Index Report. (historical releases)
The Producer Price Index for final demand rose 0.5 percent in April, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices declined 0.1 percent in March and advanced 0.6 percent in February. (See table A.) On an unadjusted basis, the index for final demand moved up 2.2 percent for the 12 months ended in April, the largest increase since rising 2.3 percent for the 12 months ended April 2023.
Nearly three-quarters of the April advance in final demand prices is attributable to a 0.6-percent increase in the index for final demand services. Prices for final demand goods moved up 0.4 percent.
The index for final demand less foods, energy, and trade services moved up 0.4 percent in April after rising 0.2 percent in March. For the 12 months ended in April, prices for final demand less foods, energy, and trade services increased 3.1 percent, the largest advance since climbing 3.4 percent for the 12 months ended April 2023.
PPI Final Demand...
The BLS has released the March, 2024 Producer Price Index Report. (historical releases)
The Producer Price Index for final demand rose 0.2 percent in March, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices moved up 0.6 percent in February and 0.4 percent in January. (See table A.) On an unadjusted basis, the index for final demand increased 2.1 percent for the 12 months ended in March, the largest advance since rising 2.3 percent for the 12 months ended April 2023.
The March increase in the index for final demand is attributable to a 0.3-percent rise in prices for final demand services. In contrast, the index for final demand goods edged down 0.1 percent.
The index for final demand less foods, energy, and trade services moved up 0.2 percent in March after rising 0.3 percent in February. For the 12 months ended in March, prices for final demand less foods, energy, and trade services increased 2.8 percent.
Now for a graph and chart...
The BLS has released the February, 2024 Producer Price Index Report. (historical releases)
The Producer Price Index for final demand rose 0.6 percent in February, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices increased 0.3 percent in January and edged down 0.1 percent in December 2023. (See table A.) On an unadjusted basis, the final demand index advanced 1.6 percent for the 12 months ended in February, the largest rise since moving up 1.8 percent for the 12 months ended September 2023.
In February, nearly two-thirds of the rise in final demand prices can be traced to the index for final demand goods, which advanced 1.2 percent. Prices for final demand services moved up 0.3 percent.
The index for final demand less foods, energy, and trade services increased 0.4 percent in February after rising 0.6 percent in January. For the 12 months ended in February, prices for final demand less foods, energy, and trade services moved up 2.8 percent.
Current graph with revisions...
Then there is this chart, which briefly compares the category to previous month's annual rate.
The BLS has released the January, 2024 Producer Price Index Report. (historical releases)
Final demand services: The index for final demand services moved up 0.6 percent in January, the largest increase since rising 0.8 percent in July 2023. In January, most of the advance is attributable to prices for final demand services less trade, transportation, and warehousing, which climbed 0.8 percent. The index for final demand trade services moved up 0.2 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Conversely, prices for final demand transportation and warehousing services fell 0.4 percent.
Product detail: A 2.2-percent increase in the index for hospital outpatient care was a major factor in the January rise in prices for final demand services. The indexes for chemicals and allied products wholesaling, machinery and equipment wholesaling, portfolio management, traveler accommodation services, and legal services also moved higher. In contrast, prices for long-distance motor carrying decreased 1.0 percent. The indexes for computer hardware, software, and supplies retailing and for engineering services also moved lower. (See table 2.)
I emphasized a specfic portion. after much jockeying with revisions of numbers in the medical category over the past year... those have come to and end. So after all these revision helped tamp down inflation numbers, those days are over.
The BLS has released the December Producer Price Index Report. (historical releases)
The Producer Price Index for final demand fell 0.1 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices moved down 0.1 percent in November and 0.4 percent in October. (See table A.) On an unadjusted basis, the index for final demand rose 1.0 percent in 2023 after increasing 6.4 percent in 2022.
If the PPI is really a forerunner of consumer inflation, then CPI should continue to ease, as PPI has nearing same rate as CPI in the periods outlined below.
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".
The BLS has released the September Producer Price Index Report. (historical releases)
The Producer Price Index for final demand increased 0.5 percent in September, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.7 percent in August and 0.6 percent in July. (See table A.) On an unadjusted basis, the index for final demand advanced 2.2 percent for the 12 months ended in September, the largest increase since moving up 2.3 percent for the 12 months ended in April.
Leading the increase in the final demand index in September, prices for final demand goods rose 0.9 percent. The index for final demand services advanced 0.3 percent.
Prices for final demand less foods, energy, and trade services increased 0.2 percent in September, the fourth consecutive advance. For the 12 months ended in September, the index for final demand less foods, energy, and trade services moved up 2.8 percent.
As is often the case... there were revisions to previous month's data, so don't be surprised if this month's data is revised next month. The size of July's data was a bit surprising however. When that data came out, it was considered above expectations at +0.3%. A couple of month's later, it was revised to +0.6%, without any discussion.
The BLS has released the July Producer Price Index Report. (historical releases)
The Producer Price Index for final demand increased 0.7 percent in August, seasonally adjusted, after rising 0.4 percent in July, the U.S. Bureau of Labor Statistics reported today. (See table A.) The August advance is the largest increase in final demand prices since moving up 0.9 percent in June 2022. On an unadjusted basis, the index for final demand rose 1.6 percent for the 12 months ended in August.
In August, 80 percent of the rise in final demand prices is attributable to a 2.0-percent jump in the index for final demand goods. Prices for final demand services advanced 0.2 percent.
The index for final demand less foods, energy, and trade services increased 0.3 percent in August, the same as in July. For the 12 months ended in August, prices for final demand less foods, energy, and trade services rose 3.0 percent, the largest advance since moving up 3.4 percent for the 12 months ended in April.
The BLS has released the July Producer Price Index Report. (historical releases)
The Producer Price Index for final demand increased 0.3 percent in July, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices were unchanged in June and declined 0.3 percent in May. (See table A.) On an unadjusted basis, the index for final demand advanced 0.8 percent for the 12 months ended in July.
In July, the increase in final demand prices was led by a 0.5-percent rise in the index for final demand services. Prices for final demand goods edged up 0.1 percent.
The BLS has released the June Producer Price Index Report. (historical releases)
The Producer Price Index for final demand increased 0.1 percent in June, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices declined 0.4 percent in May and edged up 0.1 percent in April. (See table A.) On an unadjusted basis, the index for final demand advanced 0.1 percent for the 12 months ended in June.
In June, the increase in final demand prices can be traced to a 0.2-percent rise in the index for final demand services. Prices for final demand goods were unchanged.
The index for final demand less foods, energy, and trade services moved up 0.1 percent in June after no change in May. For the 12 months ended in June, prices for final demand less foods, energy, and trade services advanced 2.6 percent.
The BLS has released the April Producer Price Index Report. (historical releases)
The Producer Price Index for final demand declined 0.3 percent in May, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.2 percent in April and fell 0.4 percent in March. On an unadjusted basis, the index for final demand moved up 1.1 percent for the 12 months ended in May.
In May, the decline in the final demand index can be traced to prices for final demand goods, which fell 1.6 percent. The index for final demand services increased 0.2 percent.
Prices for final demand less foods, energy, and trade services were unchanged in May after inching up 0.1 percent in April. For the 12 months ended in May, the index for final demand less foods, energy, and trade services increased 2.8 percent.
Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate demand fell 4.8 percent in May after increasing 1.6 percent in April. Almost 60 percent of the broad- based decrease is attributable to a 7.8-percent drop in prices for unprocessed energy materials.
Nearly 60 percent of the May decline in the index for unprocessed goods forintermediate demand can be traced to prices for crude petroleum, which fell 10.2 percent.
Reviewed this weeks EIA report and observed the current status of inventories. Oddly, although domestic consumption is down from last year,...