The BLS released the September PPI report and like the CPI it’s not good news.
PRODUCER PRICE INDEXES - SEPTEMBER 2024
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 index for final demand less foods, energy, and trade services inched up 0.1 percent in September after rising 0.2 percent in August. For the 12 months ended in September, prices for final demand less foods, energy, and trade services increased 3.2 percent.
Final Demand
Final demand services: The index for final demand services moved up 0.2 percent in September after rising 0.4 percent in August. Leading the broad-based increase in September, prices for final demand services less trade, transportation, and warehousing advanced 0.1 percent. The indexes for final demand trade services and for final demand transportation and warehousing services also rose, 0.2 percent and 0.3 percent, respectively. (Trade indexes measure changes in margins received by wholesalers and retailers.)
Product detail: A 3.0-percent increase in the index for deposit services (partial) was a major factor in the September advance in prices for final demand services. The indexes for machinery and vehicle wholesaling, furniture retailing, desktop and portable device application software publishing, apparel wholesaling, and airline passenger services also rose. Conversely, margins for professional and commercial equipment wholesaling fell 6.3 percent. The indexes for securities brokerage, dealing, investment advice, and related services and for consumer loans (partial) also moved lower. (See table 2.)
Final demand goods: The index for final demand goods decreased 0.2 percent in September following no change in August. The decline can be traced to a 2.7-percent drop in prices for final demand energy. In contrast, the indexes for final demand foods and for final demand goods less foods and energy increased 1.0 percent and 0.2 percent, respectively.
Product detail: Leading the September decline in prices for final demand goods, the index for gasoline decreased 5.6 percent. Prices for diesel fuel, jet fuel, chicken eggs, home heating oil, and plastic resins and materials also fell. Conversely, the index for processed poultry jumped 8.8 percent. Prices for electric power and for motor vehicles also moved higher.
Here are the monthly graphical (AI) generated visuals.
And the yearly graphical (AI) generated visuals.
We see a whole lot more red on the charts than green.
Stay tuned, stay profitable and stay solvent…