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Monday, January 21, 2019 5:37:09 AM EST

PPI Updated 15-Jan-19 09:16AM ET

The Producer Price Index for final demand declined 0.2% ( consensus -0.1%) while the index for final demand, less food and energy, declined 0.1% ( consensus +0.2%).

The monthly changes left the index for final demand up 2.5% year-over-year, unchanged from November, and the index for final demand, less food and energy, up 2.7%, also unchanged from November.

The index for final demand goods declined 0.4%. Most of that drop was the result of a 5.4% drop in the index for final demand energy.

The index for final demand services slipped 0.1%.  That downturn was led by a 0.3% decline in the index for final demand trade services.

Processed goods for intermediate demand dropped 0.9%, which was the largest decline sine February 2016.t

The index for unprocessed goods for intermediate demand surged 11.2%, which was the biggest increase sine November 2006. Most of that uptick was owed to a 24.1% rise in prices for unprocessed energy materials.

The key takeaway from this report is that producer price inflation is moderating, which will suggest in the market's mind that consumer price inflation is going to as well.
Final Demand-0.2%0.1%0.6%0.2%-0.1%
Core (excluding ...)
Food and Energy-0.1%0.3%0.5%0.2%-0.1%
Food, Energy, and Trade0.0%0.3%0.2%0.4%0.1%
Final Demand Goods
Finished Goods-0.3%-0.8%0.7%-0.1%0.0%
Final Demand Services
Intermediate Demand