Courtesy of Mish.
According to the BLS, the Producer Price Index (PPI) for Final Demand rose 0.6% in January.
Is this the start of a price-inflation trend that the inflationistas want?
PPI Notes
- PPI for Final Demand rose 0.6% in January.
- Final demand prices rose 0.2 percent in December and 0.5 percent in November.
- On an unadjusted basis, the final demand index climbed 1.6 percent for the 12 months ended January 2017.
- In January, prices for final demand less foods, energy, and trade services rose 0.2 percent after inching up 0.1 percent in December.
- For the 12 months ending in January, the index for final demand less foods, energy, and trade services climbed 1.6 percent.
- Three-fourths of the January increase can be traced to the index for final demand energy, which jumped 4.7 percent.
- Prices for final demand goods less foods and energy climbed 0.4 percent.
- The index for final demand foods was unchanged.
Crude Daily Chart
The dashed lines show the price of Crude at the start of the January. Crude has been steady or lower since then.
Unless there is a quick jump in price at the end of this month, the February PPI report rates to be benign. With gasoline suppliers needing to dump winter gas blend inventories, I do not expect a gas jump, but it is possible.
The price of crude could take off down the line, and that is something to watch.
