2017 Economic Calendar
POWERED BY  econoday logo
U.S. & Intl Recaps   |   Event Definitions   |   Today's Calendar   |   

PPI-FD  
Released On 3/14/2017 8:30:00 AM For Feb, 2017
PriorConsensusConsensus RangeActual
PPI-FD - M/M change0.6 %0.1 %-0.1 % to 0.3 %0.3 %
PPI-FD - Y/Y change1.6 %2.2 %
PPI-FD less food & energy - M/M change0.4 %0.2 %0.0 % to 0.3 %0.3 %
PPI-FD less food & energy - Y/Y change1.2 %1.5 %
PPI-FD less food, energy & trade services - M/M change0.2 %0.2 %0.2 % to 0.3 %0.3 %
PPI-FD less food, energy & trade services - Y/Y change1.6 %1.8 %

Highlights
Producer prices show significantly more pressure than expected in February, at a 0.3 percent headline with the two main groupings -- less food & energy and less food, energy & trade services -- also rising 0.3 percent. Year-on-year, overall producer prices are up 2.2 percent for the hottest rate in nearly 5 years.

Energy, as it has been in recent months, is a main source of pressure, rising 0.6 percent in February with easy comparisons against low levels last year a main reason for the year-on-year acceleration. Goods prices in total rose 0.3 percent in the month. Services also show pressure, up 0.4 percent and reflecting special pressure for traveler accommodation.

Headlines at 0.3 percent may not sound like much but they are for this report, one that lifts the chances for higher-than-expected readings in tomorrow's consumer price report and underscores the reality that inflation, even without acceleration in wages, is on the rise, a fact that will not escape Federal Reserve policy makers who are meeting this week. Note that heavy weather in Washington briefly delayed the release of this morning's report.

Recent History Of This Indicator
Producer prices in January correctly signaled what proved to be outsized gains for consumer prices during the month. Forecaster see the PPI-FD headline for February rising but only a slight 0.1 percent, down from January's 0.6 percent jump and reflecting the month's decline in energy costs. When excluding energy as well as food, prices are expected to rise 0.2 percent from 0.4 percent. No moderation is expected for trade services which with the February consensus excluding food, energy & trade services seen rising 0.2 percent as they did in January.

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
 


powered by  [Econoday]