Friday, December 12, 2014

Producer Prices Fell in November

The Producer Price Index for final demand declined 0.2% in November, seasonally adjusted, following a 0.2% increase in October and a 0.1% decline in September. On an unadjusted basis, the index for final demand advanced 1.4% for the 12 months ended in November, continuing the trend of slower annual growth that began in August of this year.

The index for final demand goods declined 0.7%, the fifth consecutive decrease. The broad-based decline was led by a 3.1% decline in energy, as well as a 0.2% decline in foods. Sixty percent of the November decline in prices for final demand goods can be attributed to the index for gasoline, which dropped 6.3%.

Final demand services rose 0.1%, driven by a 4.0% increase in prices for loan services as well as increases in the margin for machinery and equipment wholesaling, food wholesaling, food and alcohol retailing and bundled wired telecommunications access services.

Prices for finished goods moved down 0.7% in November, the largest decrease since July 2009, led by a 2.7% drop in finished consumer energy goods and a 0.5% decline in finished consumer foods.

The index for processed goods for intermediate demand moved down 1.0% in November, the largest decrease since March 2013. Two-thirds of the broad-based decline was the result of prices for processed energy goods, which fell 3.4%. Unprocessed goods for intermediate demand decreased 1.3%, driven by a 3.7% decrease in energy materials, partially offset by a 0.9% increase in foodstuffs and feedstuffs.

Read the BLS report.

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