The BLS released the October PPI report and like the CPI it’s not good news.
PRODUCER PRICE INDEXES - OCTOBER 2024
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.
Final Demand
Final demand services: The index for final demand services increased 0.3 percent in October after rising 0.2 percent in September. Over three-fourths of the broad-based advance in October is attributable to prices for final demand services less trade, transportation, and warehousing, which
moved up 0.3 percent. The indexes for final demand transportation and warehousing services and for final demand trade services also increased, 0.5 percent and 0.1 percent, respectively. (Trade indexes measure changes in margins received by wholesalers and retailers.)
Product detail: Over one-third of the rise in the index for final demand services can be traced to prices for portfolio management, which advanced 3.6 percent. The indexes for machinery and vehicle wholesaling; airline passenger services; computer hardware, software, and supplies retailing;
outpatient care (partial); and cable and satellite subscriber services also moved higher. In contrast, margins for apparel, footwear, and accessories retailing fell 3.7 percent. Prices for securities brokerage, dealing, investment advice, and related services and for truck transportation of freight also declined. (See table 2.)
Final demand goods: The index for final demand goods inched up 0.1 percent in October following two consecutive decreases. The advance can be traced to a 0.3-percent rise in prices for final demand goods less foods and energy. Conversely, the indexes for final demand energy and for final demand
foods declined 0.3 percent and 0.2 percent, respectively.
Product detail: An 8.4-percent increase in the index for carbon steel scrap was a major factor in the advance in prices for final demand goods. The indexes for meats, diesel fuel, fresh and dry vegetables, and oilseeds also moved higher. In contrast, prices for liquefied petroleum gas fell 18.1
percent. The indexes for chicken eggs, processed poultry, and ethanol also decreased.
And the yearly graphical (AI) generated visuals.
Clearly the PPI inflationary trends are moving in the wrong direction and many people are anticipating more Fed cuts, we don’t see how this will help lower inflation.
Stay tuned, stay profitable and stay solvent…