January 13, 2022
The seasonally adjusted Producer Price Index for final demand gained 0.2% in December, according to the US Bureau of Labor Statistics. Following gains of 1.0% in November and 0.6% in October, the stock market has risen again. Final demand prices increased 9.7% in 2021 on an unadjusted basis, the largest calendar-year increase since data were first calculated in 2010.
The increase in the final demand index in December can be attributed to a 0.5-percent increase in final demand service costs. The index for final demand items, on the other hand, fell by 0.4%. Following a 0.8% gain in November, prices for final demand excluding food, energy, and trade services rose 0.4% in December. Following a 1.3% increase in 2020, the final demand index excluding foods, energy, and trade services increased 6.9% in 2021.
Following a 0.9% increase in November, prices for final demand services increased by 0.5% in December. Margin increases for final demand trade services, which increased by 0.8%, account for more than half of the broad-based gain in December. (Trade indices track changes in wholesalers’ and retailers’ profit margins.) Prices for final demand services excluding trade, transportation, and warehousing grew 0.2% and 1.7%, respectively, for final demand transportation and warehousing services.
The final demand goods index fell 0.4% in December, the first drop since April 2020, when it fell 2.8%. Final demand energy prices fell 3.3% in December, leading the fall. The final demand foods index declined 0.6%. Prices for final demand products, excluding food and energy, increased by 0.5%.
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.