The BLS released their producer price index report today and it shows slow progress in the right direction.
The Producer Price Index for final demand declined 0.5 percent in December, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.2 percent in November and 0.4 percent in October. (See table A.) On an unadjusted basis, the index for final demand increased 6.2 percent in 2022 after rising 10.0 percent in 2021. In December, the decrease in the final demand index can be attributed to a 1.6-percent decline in prices for final demand goods. In contrast, the index for final demand services rose 0.1 percent. Prices for final demand less foods, energy, and trade services edged up 0.1 percent in December after increasing 0.3 percent in November. The index for final demand less foods, energy, and trade services advanced 4.6 percent in 2022 following a 7.0-percent rise in 2021. Final Demand Final demand goods: Prices for final demand goods moved down 1.6 percent in December, the largest decrease since falling 1.8 percent in July. Leading the December decline, the index for final demand energy dropped 7.9 percent. Prices for final demand foods decreased 1.2 percent. Conversely, the index for final demand goods less foods and energy advanced 0.2 percent.
We compiled the inflation rates from the US Top Trading Partners to get a sense check of how things stand globally.
Inflation for the top US trading partners seems to have flatlined on average but it’s still high. And here’s the chart for the top 3 US trading partner inflation.
This chart shows a better improvement with Canada, Mexico and China all moderating however with China re-opening after strict covid restrictions, inflation may increase there over the upcoming months. We’ll keep an eye on it but in the meantime, stay tuned, stay profitable and stay solvent…