2017 Economic Calendar
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PPI-FD  
Released On 1/13/2017 8:30:00 AM For Dec, 2016
PriorConsensusConsensus RangeActual
PPI-FD - M/M change0.4 %0.3 %0.2 % to 0.5 %0.3 %
PPI-FD - Y/Y change1.3 %1.6 %
PPI-FD less food & energy - M/M change0.4 %0.1 %0.1 % to 0.3 %0.2 %
PPI-FD less food & energy - Y/Y change1.6 %1.6 %
PPI-FD less food, energy & trade services - M/M change0.2 %0.2 %0.1 % to 0.3 %0.1 %
PPI-FD less food, energy & trade services - Y/Y change1.8 %1.7 %

Highlights
Monthly increases for food and energy pulled producer prices 0.3 percent higher in December, a moderate gain that lifts the year-on-year rate 3 tenths higher to plus 1.6 percent, which isn't too inflationary but is moving in the right direction.

Food prices rose 0.7 percent in the month though year-on-year the reading is minus 1.1 percent. Energy prices jumped 2.6 percent reflecting a 7.8 percent monthly spike in gasoline. Year-on-year, energy prices in this report are up 5.9 percent.

Service prices are closely watched in this report but in total come out with only a 0.1 percent monthly gain. Trade services rose 0.2 percent but transport services fell 0.4 percent. Separately, construction prices came in at minus 0.1 percent.

The annual pace for most of the key rates in this report, though improving, are still under 2 percent which doesn't point to much risk of a sudden jump in overall inflation. Watch for consumer prices next Wednesday.

Definition
The Producer Price Index (PPI) of the Bureau of Labor Statistics (BLS) is a family of indexes that measures the average change over time in the prices received by domestic producers of goods and services. PPIs measure price change from the perspective of the seller. Effective with the January 2014 PPI data release in February 2014, BLS transitioned from the Stage of Processing (SOP) to the Final Demand-Intermediate Demand (FD-ID) aggregation system. The headline PPI (for Final Demand) measures price changes for goods, services, and construction sold to final demand: personal consumption, capital investment, government purchases, and exports.  Why Investors Care
 
[Chart]
With the redefined and expanded PPI Final Demand series, energy still creates monthly volatility. However, services and construction have softened the headline and core numbers.
Data Source: Haver Analytics
 
[Chart]
A sluggish economy in 2013 and 2014 slowed inflation at the producer level.
Data Source: Haver Analytics
 
 

2017 Release Schedule
Released On: 1/132/143/144/135/116/137/138/109/1310/1211/1412/12
Release For: DecJanFebMarAprMayJunJulAugSepOctNov
 


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