Today’s release of the June Producer Price Index (PPI) for Final Demand came in at 0.3% month-over-month seasonally adjusted, down from last month’s 0.3%.
It is at 3.4% year-over-year, down from 3.1% last month, on a non-seasonally adjusted basis. Core Final Demand (less food and energy) came in at 0.3% MoM, unchanged from the previous month and is up 2.8% YoY NSA. Investing.com MoM consensus forecasts were for 0.2% headline and 0.2% core.
Here is the summary of the news release on Final Demand:
The Producer Price Index for final demand rose 0.3 percent in June, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.5 percent in May and 0.1 percent in April. (See table A.) On an unadjusted basis, the final demand index moved up 3.4 percent for the 12 months ended in June, the largest 12-month increase since climbing 3.7 percent in November 2011.
In June, most of the rise in the index for final demand is attributable to a 0.4-percent advance in prices for final demand services. The index for final demand goods edged up 0.1 percent.
Prices for final demand less foods, energy, and trade services moved up 0.3 percent in June after rising 0.1 percent in May. For the 12 months ended in June, the index for final demand less foods, energy, and trade services climbed 2.7 percent. More…
Finished Goods: Headline and Core
The BLS shifted its focus to its new “Final Demand” series in 2014, a shift we support. However, the data for these series are only constructed back to November 2009 for Headline and April 2010 for Core. Since our focus is on longer-term trends, we continue to track the legacy Producer Price Index for Finished Goods, which the BLS also includes in their monthly updates.
As this (older) overlay illustrates, the Final Demand and Finished Goods indexes are highly correlated.
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