RJS, MarketWatch 666 Summary: Producer Prices Rose 1.4% in March, Annual Increase at 11.2%, with Goods Up 15.7%, Services Up 8.7%, All Record Highs The seasonally adjusted Producer Price Index (PPI) for final demand rose 1.4% in March, as average prices for finished wholesale goods rose by 2.3% and final demand for services rose 0.9% . . . that increase followed a revised 0.9% increase in February, when average prices for finished wholesale goods rose by 2.3% while final demand for services rose 0.3%, a revised 1.2% increase in January, when wholesale goods prices rose 1.6% and the price index for final demand for services rose 0.9%, a revised 0.6% increase in December, when average prices for finished wholesale goods fell 0.1%, but margins of
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RJS, MarketWatch 666
Summary: Producer Prices Rose 1.4% in March, Annual Increase at 11.2%, with Goods Up 15.7%, Services Up 8.7%, All Record Highs
The seasonally adjusted Producer Price Index (PPI) for final demand rose 1.4% in March, as average prices for finished wholesale goods rose by 2.3% and final demand for services rose 0.9% . . . that increase followed a revised 0.9% increase in February, when average prices for finished wholesale goods rose by 2.3% while final demand for services rose 0.3%, a revised 1.2% increase in January, when wholesale goods prices rose 1.6% and the price index for final demand for services rose 0.9%, a revised 0.6% increase in December, when average prices for finished wholesale goods fell 0.1%, but margins of final services providers were 0.9% higher, and a revised 1.0% increase in November, when prices for finished wholesale goods rose 0.9% and margins of final services providers were 1.0% higher . . . on an unadjusted basis, producer prices are now a record 11.2% higher than a year ago, up from the upwardly revised 10.3% year over year increase now shown for February’s producer prices, while the core producer price index, which excludes food, energy and trade services, rose by 0.9% for the month, and is now 7.0% higher than in a year ago, up from the revised 6.7% year over year core PPI increase that is now indicated for February…
Below we are including a graph showing the year over year change in the PPI Final Demand price index, monthly over the period that metric has been computed…
As we noted, the producer price index for final demand for goods, previously called ‘finished goods’, was a 2.3% higher in March, after being revised to 2.3% higher in February, to 1.6% higher in January, after being 0.1% lower in December, 0.9% higher in November, 1.3% higher in October. 1.2% higher in September, 1.0% higher in August, 0.8% higher in July, 1.3% higher in June, 1.4% higher in May, 1.0% higher in April, and 1.3% higher in March of last year, and hence is now up by a record 15.70% from a year ago, easily topping November’s 14.85% record annual increase . . . the finished goods price index rose 2.3% in February as the price index for wholesale energy goods was 5.7% higher in March, after it had risen by a revised 7.5% in February and a revised 4.1% in January, and as the price index for wholesale foods rose 2.4%, after rising by a revised 2.1% in February and by a revised 1.8% in January, while the index for final demand for core wholesale goods (excluding food and energy) rose 1.1% in March, after rising a revised 0.8% in February and by a revised 0.8% in January . . . wholesale energy prices averaged 5.7% higher on a 4.9% increase in wholesale prices for gasoline, a 10.4% increase in wholesale prices for diesel fuel, a 20.2% increase in wholesale prices for home heating oil, and a 12.9% increase in wholesale prices for liquefied petroleum gas, while the wholesale food price index rose 2.4% on a 42.4% increase in the wholesale price index for fresh and dry vegetables, a 16.1% increase in the wholesale price index for grains, an 8.4% increase in the wholesale price index for shortening and cooking oils. a 5.6% increase in the wholesale price index for oilseeds, and a 4.2% increase in the wholesale price index for pork, even as the wholesale price index for eggs for fresh use fell 16.1% . . . among core wholesale goods, the wholesale price index for home electronic equipment rose 1.5%, the wholesale price index for industrial chemicals rose 3.1%, the wholesale price index for transformers and power regulators rose 7.9%. the wholesale price index for aircraft rose 1.5%, the wholesale price index for jewelry, platinum and karat gold rose 5.9%, the wholesale price index for mobile homes rose 3.3%, and the wholesale price index for iron and steel scrap rose 27.5%.
With the annual increase in the price index for final demand for goods at a record high, we are including a graph showing its year over year change monthly over the period that metric has been computed…
Meanwhile, the price index for final demand for services was 0.9% higher in March, after rising by a revised 0.3% in February, by a revised 0.9% in January, by a revised 0.9% in December and by a revised 1.0% in November, and is now up by a record 8.7% from a year ago, up from the 8.2% year over year increase that is now indicated for February . . . the price index for final demand for trade services rose 0.9%, and the price index for final demand for transportation and warehousing services rose 1.2%, while the core index for final demand for services less trade, transportation, and warehousing services was 0.3% higher . . . among trade services, seasonally adjusted margins for fuels and lubricants retailers rose 22.7%, margins for furniture retailers rose 4.5%, margins for hardware, building materials, and supplies retailers rose 3.9%, margins for automotive parts and tires retailers rose 2.4%, and margins for paper and plastics products wholesalers rose 6.7%, while margins for automobile retailers fell 2.4% and margins for food and alcohol retailers fell 0.2% . . . among transportation and warehousing services, average margins for airline passenger services rose 6.9%, margins for truck transportation of freight rose 6.6%, and margins for air transportation of freight rose 1.5% . . . among the components of the core final demand for services index, the price index for consumer loans rose 1.1%, the price index for passenger car rental rose 8.1%, the price index for traveler accommodation services rose 10.4%, and the price index for application software publishing rose 3.7%, while the price index for deposit services fell 5.2% and the price index for securities brokerage, dealing, investment advice, and related services fell 4.5% …
Since the annual increase in the price index for final demand for service is also at a record high, we are also including a graph showing the year over year change for that metric, for every month over the period that metric has been computed..
This report also showed the price index for intermediate processed goods rose 1.6% in March after rising a revised 1.6% in February, by a revised 2.1% in January, but after falling 0.1% in December, after rising a revised 1.5% in November, 2.4% in October, 1.2% in September, and 1.0% in August . . . the price index for intermediate energy goods rose 6.4% in March, as producer prices for liquefied petroleum gas rose 12.9%, refinery prices for gasoline rose 4.9%, refinery prices for jet fuel rose 23.0%, and refinery prices for diesel fuel rose 20.4% . . . at the same time, the price index for intermediate processed foods and feeds rose 2.0%, as the producer price index for processed poultry rose 3.8%, the producer price index for dairy products rose 2.7%, the producer price index for prepared animal feeds rose 3.0%, and the producer price index for fats and oils rose 7.5% . . . meanwhile, the core price index for intermediate processed goods less food and energy goods rose 0.8%, as the producer price index for softwood lumber rose 6.0%, the producer price index for plywood rose 3.3%, the producer price index for basic organic chemicals rose 3.5%, the producer price index for aluminum mill shapes rose 6.2%, the producer price index for nonferrous wire and cable rose 4.4%, the producer price index for fabricated ferrous wire products rose 3.9%, the producer price index for primary nonferrous metals rose 2.2%, the producer price index for secondary nonferrous metals rose 3.7%, and the producer price index for phosphates rose 6.7%, while the producer price index for plastic resins and materials fell 1.6% and the producer price index for steel mill products fell 4.9% . . . average prices for intermediate processed goods are now 21.7% higher than in March a year ago, down from their 23.3% year over year increase in February, and down from their 26.6% year over year increase in November, which had been a 46 year high…..
At the same time, the price index for intermediate unprocessed goods fell 1.4% in March, after rising a revised 13.0% in February and a revised 2.7% in January, after falling by a revised 4.6% in December and rising by a revised 2.3% in November. rising by 6.0% in October, and by 2.8% in September, 1.4% in August, and by 3.2% in July, by 2.1% in June, and by 7.9% in May…that was as the March price index for crude energy goods fell 11.2%, as unprocessed natural gas prices fell 30.1% while crude oil prices rose 7.2% and coal prices rose 6.6% . . . on the other hand, the price index for unprocessed foodstuffs and feedstuffs was 5.2% higher on a 19.0% increase in producer prices for slaughter chickens, a 24.3% increase in producer prices for wheat, a 14.5% increase in producer prices for corn, a 4.3% increase in producer prices for alfalfa hay, and a 5.6% increase in producer prices for oilseeds . . . meanwhile, the index for core raw materials other than food and energy materials was 9.5% higher, on a 27.6% increase in the price index for iron and steel scrap and a 5.6% increase in the price index for nonferrous metal ores . . . this raw materials index is now 40.8% higher than a year ago, up from the 36.8% year over year increase in February, but down from the record 59.2% annual increase in April, and now the seventeenth consecutive year over year increase for this index, after the annual change on this index had been negative from the beginning of 2019 through October of 2020…
Lastly, the price index for services for intermediate demand was 0.6% higher in March, after being unchanged in February, after rising a revised 0.8% in January, by 0.8% in December, and by 0.6% in November, after being unchanged in October, after rising by a revised 0.3% in September, by 0.4% in August, and rising by 0.6% in July and by 1.2% in June . . . the price index for intermediate trade services rose 1.9%, as margins for intermediate hardware, building materials, and supplies retailers rose 2.9%, margins for intermediate paper and plastics products wholesalers rose 6.7%, and margins for intermediate food wholesalers rose 0.6% . . . at the same time, the index for transportation and ware-housing services for intermediate demand was 2.0% higher, as the intermediate price index for transportation of passengers rose 6.8%, the intermediate price index for air mail and package delivery services (not by USPS) rose 2.6%, and the intermediate price index for truck transportation of freight rose 6.6% . . . on the other hand the core price index for intermediate services other than trade, transportation, and warehousing services fell 0.1%, as the intermediate price index for television advertising time sales fell 3.3%, the intermediate price index for deposit services (partial) fell 5.2%, the intermediate price index for securities brokerage, dealing, investment advice, and related services fell 4.5%%, and the intermediate price index for investment banking fell 3.9%, while the intermediate price index for traveler accommodation services rose 10.4% and the intermediate price index for passenger car rental rose 8.1% . . . over the 12 months ended in March, the year over year price index for services for intermediate demand is still 7.4% higher than it was a year ago, the eighteenth consecutive positive annual increase in this index change since it briefly turned negative year over year from April to August of 2020, while it is still down from the record 9.5% year over year increase indicated for July…