2017 Economic Calendar
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PPI-FD  
Released On 10/12/2017 8:30:00 AM For Sep, 2017
PriorConsensusConsensus RangeActual
PPI-FD - M/M change0.2 %0.4 %0.3 % to 0.5 %0.4 %
PPI-FD - Y/Y change2.4 %2.6 %
PPI-FD less food & energy - M/M change0.1 %0.2 %0.1 % to 0.4 %0.4 %
PPI-FD less food & energy - Y/Y change2.0 %2.2 %
PPI-FD less food, energy & trade services - M/M change0.2 %0.2 %0.2 % to 0.3 %0.2 %
PPI-FD less food, energy & trade services - Y/Y change1.9 %2.1 %

Highlights
A rebound for services and also hurricane-related increases in energy prices fed an as-expected 0.4 percent gain in producer prices for September. When excluding food and energy and also trade services, the gain moderates to only 0.2 percent which is also expected.

Energy prices at the producer level jumped 3.4 percent in the month following August's 3.3 percent spike in what the Labor Departments says is a clear hurricane effect. Food prices are not showing any effects from the hurricanes, unchanged following a 1.3 percent decline in August. Excluding food and energy, September's producer prices rose 0.4 percent which is higher than expected and reflects pressure in services.

Trade services jumped 0.8 percent in the month but follow no change in August and a 0.2 percent decline in July. Taking the 3 months together, wholesale pressures for services look moderate.

And also moderate but showing some lift are year-on-year rates, at 2.6 percent overall for a 2 tenths gain and 2.1 percent less food, energy & trade services which is also up 2 tenths. Today's report doesn't represent an upward shift for the nation's inflation picture but is favorable and will offers some support for Federal Reserve policy makers who see inflation gradually trending higher.

Recent History Of This Indicator
Producer prices have been unusually soft at only a 0.2 percent gain in August despite a jump for energy prices. Excluding energy and also food, the core rate was even weaker, up only 0.1 percent in August to miss Econoday's consensus for the 4th month in a row. Weakness here has been tied to lack of price pressures in trade services. Excluding food, energy and also trade services, producer prices managed only a 0.2 percent August gain. September's consensus forecasts are as follows: plus 0.4 percent for the PPI-FD overall, plus 0.2 percent less and energy, plus 0.2 percent less food, energy and trade services.

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
 


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