2018 Economic Calendar
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PPI-FD  
Released On 2/15/2018 8:30:00 AM For Jan, 2018
PriorPrior RevisedConsensusConsensus RangeActual
PPI-FD - M/M change-0.1 %0.0 %0.4 %0.3 % to 0.4 %0.4 %
PPI-FD - Y/Y change2.6 %2.7 %
PPI-FD less food & energy - M/M change-0.1 %0.2 %0.1 % to 0.3 %0.4 %
PPI-FD less food & energy - Y/Y change2.3 %2.2 %
PPI-FD less food, energy & trade services - M/M change0.1 %0.2 %0.2 % to 0.3 %0.4 %
PPI-FD less food, energy & trade services - Y/Y change2.3 %2.5 %

Highlights
Visible but still limited signs of pressure headline January's producer price report where total prices hit the high end of expectations at a 0.4 percent monthly gain. The two core readings, the first excluding food and energy and the second also excluding services, also rose 0.4 percent which just tops high-end expectations.

Pressure in energy, which swings regularly month-to-month, is no surprise, up a very sharp 3.4 percent in the month. It's a bounce back for services that it is most important in this report, up 0.3 percent vs minus 0.1 percent in December and plus 0.2 percent in November. The closely watched trade-services subcomponent is also up 0.3 percent.

Despite the monthly pressure, however, year-on-year rates are still flat, at 2.7 percent overall and at only 2.2 percent excluding food and energy. Yet this report does fit in with recent indications, especially in yesterday's consumer price report, that inflation pressures may finally be simmering.

Recent History Of This Indicator
Producer prices did show pressure toward the end of last year but not in December when they fell an unexpected 0.1 percent at the headline level on a pullback in service costs. Forecasters are looking for a snap back in January to a gain of 0.4 percent. Less food and energy is seen up 0.2 percent with less food, energy and trade services also expected to rise 0.2 percent.

Definition
The Producer Price Index (PPI) of the Bureau of Labor Statistics (BLS) is a family of indexes that measures the average change over time in the prices received by domestic producers of goods and services. PPIs measure price change from the perspective of the seller. Effective with the January 2014 PPI data release in February 2014, BLS transitioned from the Stage of Processing (SOP) to the Final Demand-Intermediate Demand (FD-ID) aggregation system. The headline PPI (for Final Demand) measures price changes for goods, services, and construction sold to final demand: personal consumption, capital investment, government purchases, and exports.  Why Investors Care
 
[Chart]
With the redefined and expanded PPI Final Demand series, energy still creates monthly volatility. However, services and construction have softened the headline and core numbers.
Data Source: Haver Analytics
 
[Chart]
A sluggish economy in 2013 and 2014 slowed inflation at the producer level.
Data Source: Haver Analytics
 
 

2018 Release Schedule
Released On: 1/112/153/144/105/96/137/118/99/1210/1011/912/11
Release For: DecJanFebMarAprMayJunJulAugSepOctNov
 


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