On the heels of a hot CPI report, the BLS released the November PPI report and it’s hotter than the CPI!
PRODUCER PRICE INDEXES - NOVEMBER 2024
The Producer Price Index for final demand rose 0.4 percent in November, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices increased 0.3 percent in October and 0.2 percent in September. (See table A.) On an unadjusted basis, the index for final
demand advanced 3.0 percent for the 12 months ended in November, the largest rise since moving up 4.7 percent for the 12 months ended February 2023.
In November, nearly 60 percent of the broad-based rise in final demand prices can be attributed to a 0.7-percent increase in the index for final demand goods. Prices for final demand services moved up 0.2 percent.
The index for final demand less foods, energy, and trade services inched up 0.1 percent in November after rising 0.3 percent in October. For the 12 months ended in November, prices for final demand less foods, energy, and trade services advanced 3.5 percent.
Final Demand
Final demand goods: The index for final demand goods moved up 0.7 percent in November, the largest increase since rising 1.1 percent in February. Eighty percent of the broad-based advance in November can be traced to prices for final demand foods, which jumped 3.1 percent. The indexes for final demand goods less foods and energy and for final demand energy both increased 0.2 percent.
Product detail: A quarter of the November rise in prices for final demand goods is attributable to a 54.6-percent jump in the index for chicken eggs. Prices for fresh and dry vegetables, fresh fruits and melons, processed poultry, non-electronic cigarettes, and residential electric power also increased. In contrast, the index for oilseeds declined 4.7 percent. Prices for diesel fuel and for primary basic organic chemicals also decreased. (See table 2.)
Final demand services: The index for final demand services rose 0.2 percent in November, the fourth consecutive increase. Leading the advance in November, margins for final demand trade services moved up 0.8 percent. (Trade indexes measure changes in margins received by wholesalers
and retailers.) The index for final demand services less trade, transportation, and warehousing rose 0.1 percent. Conversely, prices for final demand transportation and warehousing services fell 0.5 percent.
Product detail: Over one-third of the advance in prices for final demand services can be traced to margins for machinery and vehicle wholesaling, which increased 1.8 percent. The indexes for securities brokerage, dealing, and investment advice; automotive fuels and lubricants retailing; food
wholesaling; food and alcohol retailing; and apparel, footwear, and accessories retailing also rose. In contrast, prices for airline passenger services declined 2.1 percent. The indexes for guestroom rental
and for computer hardware, software, and supplies retailing also decreased.
Here is the AI assisted generated horizontal chart view. Note that there isn’t any green colored bar indicating positive changes!
Will the Fed still cut given a hot CPI & PPI? Stay tuned, stay profitable and stay solvent…