Producer Price Index

From InvestmentWiki
Jump to navigation Jump to search

The Producer Price Index (PPI) is a family of indexes that measures the average change over time in selling prices received by domestic producers of goods and services. PPIs measure price change from the perspective of the seller. This contrasts with other measures, such as the Consumer Price Index (CPI), that measure price change from the purchaser's perspective. Sellers' and purchasers' prices may differ due to government subsidies, sales and excise taxes, and distribution costs.

Methodology: https://www.bls.gov/ppi/overview.htm

Developments

https://fred.stlouisfed.org/series/PPIFIS
Producer Price Index Actual[1] Forecast(Y/Y)[1] Revised Previous(Y/Y)[1] M/M[2] Forecast(M/M)[2] Revised Previous(M/M)[2] Market Reaction Release Date
2024 December 3.30% 3.50% 3.00% 0.20% 0.40% 0.40% S&P 500 futures: +0.5%

Nasdaq 100 futures: +0.5% Dow Jones futures: +0.4%

January 14
2024 November 3.00% 2.60% 2.60% 0.40% 0.20% 0.30% December 12
2024 October 2.40% 2.30% 1.90% 0.20% 0.20% 0.10% Little changed November 14
2024 September 1.80% 1.60% 1.90% 0.00% 0.10% 0.20% October 11
2024 August 1.70% 1.80% 2.10% 0.20% 0.1% 0.0% Futures slightly changed[3] September 12
2024 July 2.20% 2.30% 2.70% 0.10% 0.2% 0.2% S&P 500 futures: +0.6%,

Nasdaq 100 futures: +0.9%

Dow Jones futures: +0.3%

August 13
2024 June 2.60% 2.30% 2.40% 0.20% 0.1% 0.0% July12
2024 May 2.20% 2.50% 2.30% -0.20% 0.10% 0.50% S&P 500 futures:+0.2%

Nasdaq 100 futures:+0.7%[4]

June
2024 April 2.20% 2.20% 1.,80% 0.50% 0.30% -0.10% S&P 500 futures[5]: -0.2%

Nasdaq 100 futures: -0.4%

May 14
2024 March 2.10% 2.20% 1.60% 0.20% 0.30% 0.60% April 11
2024 February 1.60% 1.10% 1.00% 0.60% 0.30% 0.30% March 14
2024 January 0.90% 0.60% 1.00% 0.30% 0.10% -0.10% S&P: -0.2%[6]Nasdaq 100: 0.0%

Dow Jones: -0.4%

February 16
2023 December 1.00% 1.30% 0.80% -0.10% 0.10% 0.00% January 12
2023 October 1.30% 1.90% 2.20% -0.50% 0.10% 0.40% November 15
2023 September 2.20% 1.60% 2.00% 0.50% 0.30% 0.70% October 11
2023 August 1.60% 1.20% 0.80% 0.70% 0.40% 0.40% September 14
2023 July 0.80% 0.70% 0.20% 0.30% 0.20% 0.00% August 11
2023 June 0.10% 0.40% 0.90% 0.10% 0.20% -0.40% July 13
2023 May 1.10% 1.50% 2.30% -0.30% -0.10% 0.20% June 14
2023 April 2.30% 2.40% 2.70% 0.20% 0.30% -0.40% May 11
2023 March 2.70% 3.00% 4.90% -0.50% 0.10% 0.00% April 13
2023 February 4.60% 5.40% 5.70% -0.10% 0.30% 0.30% Mar 15
2023 January 6.00% 5.40% 6.50% 0.70% 0.40% -0.20% Feb 16
2023 December 6.20% 6.80% 7.30% -0.50% -0.10% 0.20% Jan 18
2022 November 7.40% 7.20% 8.10% 0.30% 0.20% 0.30% Dec 09
2022 October 8.00% 8.30% 8.40% 0.20% 0.40% 0.20% Nov 15
2022 September 8.50% 8.40% 8.70% 0.40% 0.20% -0.20% Oct 12
2022 August 8.70% 8.80% 9.80% -0.10% -0.10% -0.40% Sep 14
2022 July 9.80% 10.40% 11.30% -0.50% 0.20% 1.00% Aug 11
2022 June 11.30% 10.70% 10.90% 1.10% 0.80% 0.90% Jul 14
2022 May 10.80% 10.90% 10.90% 0.80% 0.80% 0.40% Jun 14
2022 April 11.00% 10.70% 11.50% 0.50% 0.50% 1.60% May 12
2022 March 11.20% 10.60% 10.30% 1.40% 1.10% 0.90% Apr 13
2022 February 10.00% 10.00% 10.00% 0.80% 0.90% 1.20% Mar 15
2022 January 9.70% 9.10% 9.80% 1.00% 0.50% 0.40% Feb 15
2022 Dec 9.70% 9.80% 9.80% 0.20% 0.40% 1.00% Jan 13

2024

May 2024

  • Producer price index fell 0.2% in May versus growth of 0.5% in April and against expectations for a 0.1% increase.
  • On a yearly basis, PPI was up 2.2%, lower-than 2.5% estimate and growth of 2.3% in the previous month (revised up from 2.2%).
  • Core PPI was flat during the month (April:+0.5%) and up 2.3% on a yearly basis, both coming below expectations for a 0.3% and 2.5% increase.
  • The decline in PPI is mainly attributed to the 0.8% drop in the prices for final demand goods.
  • Around 60% decline in the price for final demand goods is attributed to a 7.1% drop in the prices for gasoline (April:+5%).
  • S&P 500 futures were up 0.2%, Nasdaq 100 futures gained 0.7% while Dow Jones futures were down 0.2% following the report.

April 2024

  • Producer price index rose 0.5% in April, higher than 0.3% estimate and -0.1% in March (revised down from 0.2%).[7]
  • Core PPI increased by 0.5%, also exceeding 0.2% estimate.
  • On a yearly basis, PPI rose 2.2% in-line with the estimate but above 1.8% in March (revised down from 2.1%).
  • Core PPI increased by 2.4% on a yearly basis, in-line with the estimate but higher than 2.1% in March (revised down from 2.4%).
  • Service inflation accounted for about three-quarters of the headline gain, rising by 0.6% in April-the biggest monthly gain since July 2023.
  • Energy index rose 2% in April after declining by 1.3% in March.
  • S&P 500 futures declined by 0.2% while Nasdaq 100 futures slipped by 0.4% following the report.

February 2024

  • Producer price Index (PPI) rose 0.6% in February, exceeding expectations for a 0.3% increase.
  • On a yearly basis, PPI rose 1.6%, above 1.2% estimate.
  • Core PPI grew 0.3%, above 0.2% estimate.
  • On a yearly basis, core PPI was up 2% higher than 1.9% estimate.
  • Services index rose 0.3% versus 0.5% increase in January.
  • Energy prices rose 4.4% after a decline of 1.1% in January.
  • S&P 500 futures rose despite the inflation coming above estimates- S&P 500 and Nasdaq 100 futures gained 0.2% while Dow Jones futures were up 0.3%.

January 2024

  • Producer price Index (PPI) rose 0.3% in January[8], exceeding expectations[9] for a 0.1% increase.
  • On a yearly basis, PPI rose 0.9% above 0.6% estimate but lower than December’s 1%.
  • Core PPI grew 0.5%, above 0.1% estimate.
  • On a yearly basis, core PPI was up 2% higher than 1.6% estimate.
  • Services index rose 0.6%, the highest since July 2023.
  • Energy prices fell 1.7% in January.

2023

February 2023

  • February Producer Price Index was encouraging. It fell 0.1%, versus 0.3% increase in January and against the estimate for a 0.3% increase. Year-on-year, PPI rose 4.6% in the month, versus 5.7% in January and below the 5.4% estimate.
  • Core PPI rose 0.2% in February, compared to 0.5% gain in January. On a yearly basis, core PPI was up 4.4% versus analyst's estimate of 5.2% and 4.4% prior.
  • The decline in headline PPI stemmed from a 0.2% drop in goods prices. Goods prices had risen by 1.2% in January.
  • Many items from the PPI report are used to calculate the personal consumption expenditures(PCE) — the Fed’s preferred measure of inflation[10].

March 2023

  • The U.S producer price index(PPI) dropped 0.5% month-over-month in March compared to expectations for prices to be flat[11].
  • Core PPI declined 0.1% month-over-month, way better than the 0.2% expected increase.
  • Year-over-year, PPI rose 2.7% in March versus 4.9% year-over-year increase in February.
  • The decline in PPI was mainly attributed to the 1% drop in the prices of final demand goods[12].

April 2023

  • The producer price index increased 0.2% in April, below 0.3% estimate.
  • Core PPI also increased 0.2% , in-line with estimates.
  • Yearly, headline PPI rose 2.3%, below the 2.4% estimate and 2.7% growth in March.
  • 80% of the rise in PPI was attributed to the 0.3% rise in prices for final demand services[13].

May 2023

  • The producer price index declined by 0.3% in May, more than the 0.1% decline expected by Dow Jones.
  • Core PPI rose 0.2% in line with the estimates.
  • The decline in PPI was mainly attributed to the 1.6% decline in prices for final demand goods[14].
  • Year-over-year, PPI rose 1.1% in May versus 1.50% expected[1].

June 2023

  • The producer price index(PPI) rose 0.1% in June, below the expected 0.2% increase.
  • Year-over-year, producer price index rose 0.1% versus expectations for a 0.4% increase.
  • Core PPI rose 0.1% in June versus expectations for a 0.2% increase.
  • Year-over-year, core PPI rose 2.4% below expectations for a 2.6% increase and also the smallest gain since January 2021[15].
  • Prices for final demand goods were flat in June.
  • The increase in PPI can be traced to a 0.2% rise in prices for final demand services[16].

July 2023

  • The producer price index(PPI) rose 0.3% in July, slightly above the 0.2% estimate[17].
  • Yearly, PPI rose 0.8%, also slightly above the 0.7% estimate.
  • Core PPI was up 0.3% versus 0.2% estimate.
  • Yearly, core PPI was up 2.4% versus 2.3% estimate.
  • The increase in PPI was mainly attributed to services, which rose 0.5% for the month, the largest increase since August 2022.

August 2023

  • August producer price index(PPI) rose 0.7% from a month earlier[18], exceeding estimate for a 0.4% increase[19].
  • Yearly, PPI rose 1.6%, also exceeding estimate for a 1.2% rise.
  • Core PPI increased 0.2%, in-line with the estimate.
  • Year-over-year, core PPI rose 2.2%, also in-line with the estimate.
  • The increase in PPI was mainly attributed to energy prices which rose 10.5% in August(July:+0.8%).
  • The prices for final demand goods rose 2% on the month while services prices rose 0.2%.

September 2023

  • September producer price index(PPI) rose 0.5% from a month earlier[18], exceeding estimate for a 0.3% increase[20].
  • Yearly, PPI rose 2.2%, also exceeding estimate for a 1.6% rise and August's 2.0% (revised up from 1.6%).
  • Core PPI rose 0.3%, above 0.2% estimate.
  • The increase in PPE came mainly from final demand goods, which rose 0.9% on the month.
  • Services grew 0.3% in September.
  • The rise in goods prices was mainly contributed by gasoline prices, which rose 5.4%.

October 2023

  • October producer price index(PPI) fell 0.5%[21], the largest decrease since April and compared to +0.1% estimate[22] and 0.4% growth in September (revised down from 0.5%).
  • Yearly, PPI rose 1.3%, below 1.9% estimate and lower than 2.2% in September.
  • Core PPI was flat month-over-month versus +0.3% estimate.
  • Yearly, core PPI rose 2.4%, below +2.7% estimate.
  • Over 80% of the decline in headline PPI was due to a 15.3% drop in the price of gasoline.
  • Services costs were flat month-over-month after rising for six consecutive months.

December 2023

  • Producer Price Index (PPI) was flat in November[23] as was expected[24].
  • On a yearly basis, PPI rose 0.9%, lower than 1.0% estimate and 1.2% in October (revised down from 1.3%).
  • Core PPI was also flat in November versus forecast for a 0.2% increase.
  • Yearly, core PPI rose 2%, lower than 2.2% estimate.
  • Services index was unchanged in November, the same as in October.
  • Energy prices fell 1.2% in November.

References

  1. ↑ 1.0 1.1 1.2 1.3 https://www.investing.com/economic-calendar/ppi-734
  2. ↑ 2.0 2.1 2.2 https://www.investing.com/economic-calendar/ppi-238
  3. ↑ https://www.cnbc.com/2024/09/11/stock-market-today-live-updates.html
  4. ↑ https://www.cnbc.com/2024/06/12/stock-market-today-live-updates.html
  5. ↑ https://www.cnbc.com/2024/05/13/stock-market-today-live-updates.html
  6. ↑ https://www.cnbc.com/2024/02/15/stock-market-today-live-updates.html
  7. ↑ https://www.bls.gov/news.release/ppi.nr0.htm
  8. ↑ https://www.bls.gov/news.release/ppi.nr0.htm
  9. ↑ https://www.bloomberg.com/news/articles/2024-02-16/us-producer-prices-increased-by-more-than-forecast-in-january
  10. ↑ https://www.cnbc.com/2023/03/15/ppi-february-2023-.html https://www.bls.gov/news.release/ppi.nr0.htm https://seekingalpha.com/news/3947615-producer-price-inflation-falls-in-february
  11. ↑ https://www.cnbc.com/2023/04/12/stock-market-today-live-updates.html
  12. ↑ https://www.bls.gov/news.release/pdf/ppi.pdf
  13. ↑ https://www.cnbc.com/2023/05/11/wholesale-prices-rose-just-0point2percent-in-april-less-than-estimate-as-inflation-pressures-ease.html
  14. ↑ https://www.cnbc.com/2023/06/13/stock-market-today-live-updates.html
  15. ↑ https://www.bloomberg.com/news/articles/2023-07-13/us-producer-prices-rise-at-slowest-pace-in-nearly-three-years?srnd=economics-v2
  16. ↑ https://www.bls.gov/news.release/pdf/ppi.pdf
  17. ↑ https://www.bloomberg.com/news/articles/2023-08-11/us-producer-prices-rise-more-than-expected-on-services-strength
  18. ↑ 18.0 18.1 https://www.bls.gov/news.release/pdf/ppi.pdf
  19. ↑ https://www.bloomberg.com/news/articles/2023-09-14/us-producer-prices-rise-most-in-more-than-a-year-on-energy-costs
  20. ↑ https://www.cnbc.com/2023/10/11/ppi-september2023-.html
  21. ↑ https://www.bls.gov/news.release/pdf/ppi.pdf
  22. ↑ https://www.bloomberg.com/news/articles/2023-11-15/us-producer-prices-decline-by-most-since-april-2020-on-gasoline
  23. ↑ https://www.bls.gov/news.release/ppi.nr0.htm
  24. ↑ https://www.bloomberg.com/news/articles/2023-12-13/us-producer-prices-little-changed-as-energy-costs-slide
Retrieved from "https://investmentwiki.mywikis.eu/w139/index.php?title=Producer_Price_Index&oldid=13786"