US PPI final demand for January 2020
- US PPI final demand 0.5% versus 0.1% estimate. The prior month was revised to 0.2% from 0.1%
- US PPI year on year 2.1% versus 1.6% estimates. That is a big rise from the 1.3% last month
- US PPI ex food and energy +0.5% versus +0.2% estimate. Prior month 0.1% unrevised
- US PPI ex food and energy year on year 1.7% versus 1.3% estimate. Prior month 1.1% unrevised
- US PPI ex food, energy, trade +0.4% versus 0.1% estimate. Prior month 0.2% versus 0.1% previously reported. This is the was gain since April.
- US PPI ex food, energy, trade year on year 1.5% versus 1.5% last month
- The headline year on year numbers the highest level since May 2019
- According to the Labor Department the large price in the final demand was due to a 0.7% jump in services cost which reflected a record 10.3% surge in margins at retailerss of apparel, jewelry, footwear and accessories. The gain in the sector outweighed record declines in freight and cargo transportation and airline passenger services
- Goods the price rose by 0.3% which was the largest gain in the year. The gains were led by iron and steel scrap which search the most since January 2017
- The rise in the wholesale cost for businesses may lead to a rise in the consumer prices as businesses pass on costs to their customers
