December Producer Price Index Declines
The Bureau of Labor Statistics announced this week that the Producer Price Index for final demand declined 0.5% in December when seasonally adjusted. The index measures the average change over time in the selling prices received by domestic producers for their output. Final demand prices advanced 0.2% in November and 0.4% in October. The index for final demand increased 6.2% in 2022 after rising an even 10% in 2021.
Prices for final demand less foods, energy, and trade services edged up 0.1% in December, up 4.6% in 2022, following a seven percent rise in 2021. Nearly half of the December decrease for final demand goods can be traced to a 13.4% decline in prices for gasoline. The indexes for diesel fuel, jet fuel, fresh and dry vegetables, canned, cooked, smoked, or prepared poultry, and basic organic chemicals also fell.
In contrast, prices for carbon steel scrap increased 8.3%. The indexes for chicken eggs and for electric power also moved higher.
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