2012 Economic Calendar
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Producer Price Index
Released On 4/12/2012 8:30:00 AM For Mar, 2012
PriorConsensusConsensus RangeActual
PPI - M/M change0.4 %0.3 %-0.2 % to 0.5 %0.0 %
PPI -Yr/Yr change2.8 %
PPI less food & energy - M/M change0.2 %0.2 %-0.1 % to 0.3 %0.3 %
PPI less food & energy - Yr/Yr change2.9 %

Highlights
PPI inflation in March was unexpectedly soft at the headline level. Meanwhile, the core rate accelerated. The PPI was unchanged in March after surging 0.4 percent in February. The consensus called for a 0.3 percent boost. The core PPI, however, posted a 0.3 percent rise, following a gain of 0.2 percent in February. Analysts expected a 0.2 percent increase.

By major components, energy decreased 1.0 percent, following a 1.3 percent spike in February. Gasoline dipped 2.0 percent after a 4.3 percent boost the prior month. Food increased 0.2 percent after dipping 0.1 percent in February.

A big part of the core increase came from a 0.8 percent jump in prices for passenger cars and a 0.7 percent jump for light trucks.

On a not seasonally adjusted basis for February, the year-ago headline PPI was up 2.8 percent compared to 3.3 percent for February while the core was up 2.9 percent in March versus 3.0 percent the month before on an NSA year-ago basis.

Recent History Of This Indicator
The producer price index in February surged 0.4 percent after rebounding 0.1 percent in January. The core PPI eased to a 0.2 percent rise after jumping 0.4 percent in January. By major components, energy spiked 1.3 percent after declining 0.5 percent in January. Gasoline was up 4.3 percent after gaining 2.0 percent in January. Food actually dipped 0.1 percent after decreasing 0.3 percent in January. A third of the February rise in the core can be traced to a 0.6 percent advance in prices for pharmaceutical preparations. An increase in the index for civilian aircraft also contributed to higher finished core prices. Weighing on the core was a 0.4 percent decline in light truck prices.

Definition
The Producer Price Index (PPI) of the Bureau of Labor Statistics (BLS) is a family of indexes that measure 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]
It is always a good idea to look at more than a few months of data to get a sense of changes in established trends. Monthly changes in the PPI are mainly volatile because of sharp fluctuations in food and energy prices. The core PPI eliminates the sharper fluctuations.
Data Source: Haver Analytics
 
[Chart]
Yearly changes tend to smooth out more severe monthly fluctuations and give a better idea of the underlying rate of inflation. Even with the smoother trend, note that the core PPI does not fluctuate as much as the total PPI.
Data Source: Haver Analytics
 
 

2012 Release Schedule
Released On: 1/182/163/154/125/116/137/138/149/1310/1211/1412/13
Release For: DecJanFebMarAprMayJunJulAugSepOctNov
 


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