By the Numbers: Producer Price Index

Finished goods

The Producer Price Index for finished goods dropped 0.2 percent in December, continuing the decline that started in October after 4 months of increase from June to September. Although the PPI for finished food goods dropped 0.9 percent and finished energy goods dropped 0.3 percent, core goods — those excluding food and energy — actually rose 0.1 percent, reducing the total decrease to 0.2 percent.

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The negative movement in the PPI for the last 3 months has not been enough to reverse the year-on-year upward movement. December 2011 showed figures not too dissimilar to Decemeber 2012’s, but December 2011 had a 4.7 percent year-on-year increase in PPI for finished goods. That increase is further compounded by December 2012’s year-on-year increase of 1.3 percent. For the past twelve months, all monthly measures of the PPI for finished goods have seen increases compared to 12 months before…

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Intermediate goods

The PPI for intermediate food goods fell 0.9 percent in December, matching the change for finished food goods. However, intermediate energy goods rose 0.9 percent after 2 months of decline. intermediate core goods also rose 0.2 percent. For all intermediate goods, the PPI rose 0.3 percent year-on-year, adding to the year-on-year increase of 5.7 percent in December 2011.

Crude goods

The PPI for crude food goods fell more than either intermediate or finished food goods, with a 1.1 percent decrease from the previous month. However, crude energy goods rose more than any of the others, with a 7.2 percent increase. Crude core goods also rose 1.1 percent in December. The year-on-year change was an increase of 1.6 percent on top of December 2011’s year-on-year increase of 6.6 percent for all crude goods.

Other industries

The PPI for trade industries, which measures changes in margins received by wholesalers and retailers, showed a 0.1 percent decrease in the net output of total trade industries. The year-on-year change was actually an increase of 4.0 percent. Transportation and warehousing industries’ PPI rose 0.2 percent in December, giving the area a 2.6 percent increase year-on-year. This increase was largely attributed to the 1.5 percent increase in scheduled passenger air transportation prices. The PPI for traditional service industries dropped 0.3 percent, still leaving December with a 1.3 percent increase year-on-year for the area.

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