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Friday, March 22, 2019 6:42:47 AM EDT




PPI
Briefing.com Updated 13-Mar-19 09:28AM ET
The Producer Price Index for February was nearly irrelevant given the soft Consumer Price Index for February seen yesterday. Be that as it may, it is worth noting that the index for final demand increased 0.1% (Briefing.com consensus +0.2%) while the index for final demand, excluding food and energy, also increased 0.1% (Briefing.com consensus +0.2%).

The index for final demand less foods, energy, and trade services edged up 0.1% after increasing 0.2% in January.

The index for final demand goods jumped 0.4%, with over 80% of that gain traced to prices for final demand energy, which surged 1.8%.

Prices for final demand services were unchanged after increasing 0.3% in January.

The index for processed goods for intermediate demand rose 0.4% following three straight declines.

The index for unprocessed goods for intermediate demand dropped 4.6%, mostly due to prices for unprocessed energy materials, after declining 3.9% in January.

The key takeaway from the report is that year-over-year inflation trends tipped lower for the index for final demand (1.9% versus 2.0% for the months ending in January) and the index for final demand, excluding food and energy (2.5% versus 2.6% for the 12 months ending in January). That tipping action will keep the Fed tipped toward a patient mindset.
 
FEBJANDECNOVOCT
Final Demand0.1%-0.1%-0.1%0.1%0.5%
Core (excluding ...)
Food and Energy0.1%0.3%0.0%0.3%0.3%
Food, Energy, and Trade0.1%0.2%0.0%0.3%0.1%
Final Demand Goods
Total0.4%-0.8%-0.3%-0.5%0.5%
Energy1.8%-3.8%-4.3%-5.1%2.5%
Finished Goods0.2%-0.7%-0.1%-0.8%0.7%
Final Demand Services
Total0.0%0.3%0.0%0.3%0.6%
Trade-0.4%0.8%-0.1%0.4%1.5%
Intermediate Demand
Processed0.4%-1.4%-0.9%-0.6%0.5%
Unprocessed-4.6%-9.3%11.1%-5.3%3.5%
Services-0.1%0.2%0.1%0.2%0.5%