Article Image

IPFS News Link • Inflation

US Producer Price Inflation Unexpectedly Remains Near Record Highs In Jan

• https://www.zerohedge.com, by Tyler Durden

Goods costs are accelerating faster than Services still with Energy and Food prices the biggest drivers...

Final demand services: Prices for final demand services advanced 0.7 percent in January, the same as in December. Three-fourths of the rise in January can be traced to a 0.9-percent increase in the index for final demand services less trade, transportation, and warehousing. Likewise, margins for final demand trade services moved up 0.6 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand transportation and warehousing services were unchanged.

A major factor in the January increase in the index for final demand services was hospital outpatient care prices, which rose 1.6 percent. The indexes for machinery and vehicle wholesaling; apparel, jewelry, footwear, and accessories retailing; traveler accommodation services; portfolio management; and truck transportation of freight also moved higher. Conversely, margins for fuels and lubricants retailing fell 9.7 percent. The indexes for transportation of passengers (partial) and for physician care also decreased.

Final demand goods: Prices for final demand goods advanced 1.3 percent in January after declining 0.1 percent in December. Over 40 percent of the broad-based increase can be traced to a 0.8-percent rise in the index for final demand goods less foods and energy. Prices for final demand energy and for final demand foods also moved higher, 2.5 percent and 1.6 percent, respectively.

Within the final demand goods category in January, the index for motor vehicles and equipment rose 0.7 percent. Prices for diesel fuel, gasoline, beef and veal, dairy products, and jet fuel also increased. In contrast, the index for iron and steel scrap decreased 10.7 percent. Prices for unprocessed finfish and for natural gas also moved lower.


Home Grown Food