Sections: Economy

Producer Price Index (PPI) Increased Unexpectedly in November

Producer Price Index (PPI): A worker in a wholesale foods production and distribution warehouse.

The Labor Department reported on Friday the Producer Price Index (PPI), a gauge of prices at the wholesale level rose 0.3% in November, beating flat expectations. The gain followed two consecutive months of decline in the PPI,

Excluding the volatile food and energy components–producer prices rose 0.3%–more than the 0.1% gain economists’ expected.

In the 12 months through November, the PPI lost 1.1% after shedding 1.6% in October. November marked the 10th straight 12-month decrease in the index. Economists had forecast the PPI unchanged last month and sliding 1.4 percent from a year ago.

Table A. Monthly and 12-month percent changes in selected final demand price indexes, seasonally adjusted
Month	Total final demand	Final demand goods				Final demand services				Change in final demand from 12 months ago (unadj.)
Month	Total final demand	Total	Foods	Energy	Less foods and energy	Total	Trade	Transportation and warehousing	Other	Change in final demand from 12 months ago (unadj.)
2014
Nov.	-0.3	-0.8	0.1	-3.7	-0.1	0.0	-0.4	0.3	0.1	1.3
Dec.	-0.3	-1.2	-0.1	-6.6	0.0	0.3	0.5	0.0	0.2	0.9
2015
Jan.	-0.7	-1.9	-0.9	-10.1	0.1	-0.1	0.5	-1.0	-0.2	0.0
Feb.	-0.4	-0.4	-1.6	0.0	0.0	-0.5	-1.6	-0.9	0.1	-0.5
Mar.	0.0	0.1	-1.0	1.2	0.0	0.1	0.2	-0.3	0.1	-0.9
Apr.	-0.1	-0.6	-1.0	-2.6	0.0	0.2	-0.1	-0.5	0.4	-1.1
May	0.5	1.5	1.4	6.5	0.2	-0.1	0.1	0.2	-0.1	-0.8
June	0.4	0.5	0.5	1.6	0.4	0.4	0.4	0.3	0.3	-0.5
July(1)	0.1	-0.2	-0.7	-0.6	0.0	0.3	0.6	0.2	0.2	-0.7
Aug.(1)	-0.1	-0.5	0.7	-2.9	-0.3	0.2	0.2	-0.7	0.2	-0.8
Sept.	-0.5	-1.2	-0.8	-5.9	0.0	-0.4	-0.4	-0.7	-0.3	-1.1
Oct.	-0.4	-0.4	-0.8	0.0	-0.3	-0.3	-0.7	0.1	-0.1	-1.6
Nov.	0.3	-0.1	0.3	-0.6	-0.1	0.5	1.2	0.3	0.1	-1.1
Footnotes (1) Some of the figures shown above and elsewhere in this release may differ from those previously reported because data for July 2015 have been revised to reflect the availability of late reports and corrections by respondents.

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PPD Business Staff

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