US Producer Price Inflation Soars in January Double Expectations PPI +1.0% m/m +9.7% y/y

US Producer price inflation continues elevated at a rapid pace, a long way from the Central Bank transitory mantra. Annual PPI rose to 9.7% in January matching December and higher than the expected 9.1% y/y. This matched the largest increase since data were first calculated in December 2009. The1.0% month-over-month rise was double the consensus 0.5% due to the sharp rise in goods prices.

Inflation

January 2022 PPI

The Producer Price Index for final demand increased 1.0 percent in January, seasonally adjusted, the
U.S. Bureau of Labor Statistics reported today. This rise followed advances of 0.4 percent in December
2021 and 0.9 percent in November. On an unadjusted basis, final demand prices moved
up 9.7 percent for the 12 months ended January 2022.

In January, the index for final demand services rose 0.7 percent, and prices for final demand goods
moved up 1.3 percent.

Prices for final demand less foods, energy, and trade services increased 0.9 percent in January 2022, the
largest increase since rising 1.0 percent in January 2021. For the 12 months ended January 2022, the
index for final demand less foods, energy, and trade services moved up 6.9 percent.

Highlights.

  • 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.
  • The index for processed goods for intermediate demand increased 1.7% month-over-month and was up 24.1% year-over-year.
  • The index for unprocessed goods for intermediate demand declined 2.0% month-over-month, largely due to prices for unprocessed energy materials, but was up 29.7% year-over-year.
  • The index for services intermediate demand rose 0.4% month-over-month and was up 7.3% year-over-year.
  • Conversely, margins for fuels and lubricants retailing fell 9.7 percent.
  • The indexes for transportation of passengers (partial) and for physician care also decreased.
  • PPI rose amid supply and labor constraints as inflationary pressure builds., the year-over-year growth rate in PPI rose to a fresh record.

US PPI January 2022

  • US PPI Final Demands (M/M) Jan: 1.0% (est 0.5%; prev 0.2%; prevR 0.3%)
  • PPI Final Demand (Y/Y) Jan: 9.7% (est 9.1%; prev 9.7%)
United States Consumer Price Index (CPI)
US PPI Annually
United States Producer Price Inflation MoM
US PPI Monthly

United States Producer Prices Final Demand Less Foods and Energy

Highlights November 2021

  • PPI Ex Food And Energy (M/M) Jan: 0.8% (est 0.5%; prev 0.5%)
  • PPI Ex Food And Energy (Y/Y) Jan: 8.3% (est 7.9%; prev 8.3%)

 

United States Producer Prices Final Demand Less Foods and Energy YoY
US Core PPI Inflation Annually
United States Producer Prices Final Demand Less Foods and Energy MoM
US Core PPI Inflation Monthly

Source BLS

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