Not good. The BLS released the PPI report and it’s more bad news following the inflationary CPI report.
PRODUCER PRICE INDEXES - JANUARY 2025
The Producer Price Index for final demand increased 0.4 percent in January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.5 percent in December 2024 and 0.2 percent in November. (See table A.) On an unadjusted basis, the index for final demand moved up 3.5 percent for the 12 months ended January 2025.
Leading the broad-based January advance in the index for final demand, prices for final demand services rose 0.3 percent. The index for final demand goods moved up 0.6 percent.
The index for final demand less foods, energy, and trade services rose 0.3 percent in January after moving up 0.4 percent in December. For the 12 months ended in January, prices for final demand less foods, energy, and trade services advanced 3.4 percent.
Final Demand
Final demand services: The index for final demand services moved up 0.3 percent in January, the sixth consecutive increase. Three-fourths of the broad-based advance in January is attributable to prices for final demand services less trade, transportation, and warehousing, which rose 0.4 percent.
The indexes for final demand transportation and warehousing services and for final demand trade services also increased, 0.6 percent and 0.1 percent, respectively. (Trade indexes measure changes in margins received by wholesalers and retailers.)
Product detail: Over one-third of the January rise in the index for final demand services can be traced to prices for traveler accommodation services, which advanced 5.7 percent. The indexes for automobile retailing (partial); truck transportation of freight; food and alcohol retailing; apparel,
jewelry, footwear, and accessories retailing; and bundled wired telecommunications access services also moved higher. In contrast, margins for fuels and lubricants retailing fell 9.8 percent. Prices for
securities brokerage, dealing, investment advice, and related services and for physician care also declined. (See table 2.)
Final demand goods: The index for final demand goods moved up 0.6 percent in January, the fourth consecutive rise. Over half of the broad-based January advance can be traced to a 1.7-percent increase in prices for final demand energy. The indexes for final demand foods and for final demand goods less foods and energy also rose, 1.1 percent and 0.1 percent, respectively.
Product detail: In January, a 10.4-percent increase in the index for diesel fuel was a major factor in the advance in prices for final demand goods. The indexes for chicken eggs, beef and veal, gas fuels, jet fuel, and communication and related equipment also moved higher. Conversely, prices for fresh and dry vegetables fell 22.3 percent. The indexes for pharmaceutical preparations and for residential electric power also decreased.