February 16, 2022
The seasonally adjusted Producer Price Index for final demand jumped 1.0 percent in January, according to the US Bureau of Labor Statistics. This increase comes after gains of 0.4 percent in December 2021 and 0.9 percent in November 2021. Final demand prices increased 9.7% in the year ended January 2022 on an unadjusted basis.
The final demand services index increased by 0.7 percent in January, while final demand goods prices increased by 1.3 percent.
Prices for final demand, excluding food, energy, and trade services, rose 0.9 percent in January 2022, the highest increase since January 2021, when they rose 1.0 percent. The final demand index, excluding foods, energy, and trade services, increased 6.9% in the year ending January 2022.
Final demand services
In January, final demand services prices increased by 0.7 percent, the same as in December. A 0.9-percent gain in the index for final demand services excluding trade, transportation, and warehousing accounts for three-quarters of the increase in January. Similarly, final demand trade services margins increased by 0.6 percent. (Trade indices track changes in wholesalers’ and retailers’ profit margins.) Final demand transportation and warehousing services remained stable in price.
Final demand goods
After falling 0.1 percent in December, prices for final demand products rose 1.3 percent in January. A 0.8 percent gain in the index for final demand products excluding food and energy accounts for more than 40% of the broad-based increase. Final demand energy and final demand foods prices both increased by 2.5 percent and 1.6 percent, respectively.
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