December 12, 2024
The Producer Price Index (PPI) for final demand in the U.S. increased by 0.4 percent in November on a seasonally adjusted basis, according to the U.S. Bureau of Labor Statistics. Prior to this, final demand prices had increased by 0.3 percent in October and 0.2 percent in September. Over the 12 months ended in November, the index for final demand rose by 3.0 percent on an unadjusted basis.
In November, a 0.7-percent increase in the index for final demand goods contributed significantly to the rise, while prices for final demand services moved up by 0.2 percent.
Excluding the volatile categories of foods, energy, and trade services, the index for final demand less foods, energy, and trade services inched up by 0.1 percent in November after a 0.3 percent increase in October. Over the 12 months ended in November, prices for final demand less foods, energy, and trade services rose by 3.5 percent.
Final demand goods
In November, prices for final demand goods moved up by 0.7 percent, the largest increase since rising 1.1 percent in February. This advance was driven by an 80 percent rise in prices for final demand foods, which jumped 3.1 percent. The indexes for final demand goods less foods and energy, and for final demand energy, both increased by 0.2 percent.
On a product level, a 54.6 percent jump in the index for chicken eggs was a major factor in the rise in prices for final demand goods. Prices for fresh and dry vegetables, fresh fruits and melons, processed poultry, non-electronic cigarettes, and residential electric power also increased. In contrast, the index for oilseeds declined by 4.7 percent. Prices for diesel fuel and primary basic organic chemicals also decreased.
Final demand services
In November, prices for final demand services increased by 0.2 percent, marking the fourth consecutive rise. Leading the November increase, margins for final demand trade services moved up by 0.8 percent. The index for final demand services less trade, transportation, and warehousing rose by 0.1 percent, while prices for final demand transportation and warehousing services fell by 0.5 percent.
A 1.8 percent increase in margins for machinery and vehicle wholesaling significantly contributed to the rise in prices for final demand services in November. Other notable increases were seen in securities brokerage, dealing, and investment advice; automotive fuels and lubricants retailing; food wholesaling; food and alcohol retailing; and apparel, footwear, and accessories retailing. In contrast, prices for airline passenger services declined by 2.1 percent, with decreases also observed in guestroom rental and computer hardware, software, and supplies retailing.
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