No. of Recommendations: 2
The US Producer Price Index (PPI) for inflation was higher than what people expected. In January, PPI went up by 0.3% (and 0.5% for the core part, which doesn’t include food and energy prices), which was more than the expected 0.1%. This rise was mainly because the cost of services increased by 0.6%, even though the price of goods dropped by 0.2%.
This suggests that getting inflation completely under control, especially in the final stages, might be trickier than many people think.
What is the PPI Anyway?
The US Producer Price Index (PPI) is a measure of the average change in prices received by domestic producers for their output. It essentially tracks how much manufacturers are charging for their goods and services before they reach consumers.
Here's a summary of the current US PPI as of today, February 16, 2024:
January 2024: The PPI for final demand increased 0.3% compared to December 2023.
Year-over-year: The PPI for final demand advanced 0.9% for the 12 months ended January 2024.
Breakdown: Prices for final demand services rose 0.6%, while the index for final demand goods decreased 0.2% in January.
