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mahatmakanejeeves

(56,904 posts)
Tue Feb 15, 2022, 09:30 AM Feb 2022

Wholesale prices rise 1% in January, up 9.7% over the past year

Source: CNBC

ECONOMY

Wholesale prices rise 1% in January, up 9.7% over the past year

PUBLISHED TUE, FEB 15 2022 8:32 AM EST UPDATED 4 MIN AGO
Jeff Cox
@JEFF.COX.7528 https://facebook.com/jeff.cox.7528
@JEFFCOXCNBCCOM https://twitter.com/JeffCoxCNBCcom

Prices at the wholesale level jumped twice the expected level in January as inflation pressures were unabated to start the year, the Labor Department said Tuesday. ... The producer price index, which measures final-demand goods and services, increased 1% for the month, against the Dow Jones estimate for 0.5%. Over the past 12 months the gauge rose an unadjusted 9.7%, close to a record in data going back to 2010.

Excluding food, energy and trade services, co-called core PPI increased 0.9% for the month, well ahead of the 0.4% estimate. For the 12-month period, the measure increased 6.9%. Both core and headline PPI gains over the year were 0.1 percentage point lower than the record levels hit in December 2021.

As has been the case through much of the pandemic era, goods prices outweighed those for services, rising 1.3% and 0.7% respectively. ... The increases come amid burgeoning inflation across the economy, with consumer prices running at a 40-year high. ... Federal Reserve officials plan to act soon to contain the price increases, with interest rate hikes expected to begin in March and continue throughout the year.

Final demand energy prices jumped 2.5% in January, while food rose 1.6%.

This is breaking news. Please check back here for updates.

Read more: https://www.cnbc.com/2022/02/15/producer-price-index-january-2022-.html



He said "jumped," so it's not true.

Here's what I originally posted, from the source, the U.S. Bureau of Labor Statistics:

PPI for final demand advances 1.0% in January; services rise 0.7%, goods increase 1.3%

https://www.bls.gov/news.release/ppi.nr0.htm

Economic News Release USDL 22-0262

Producer Price Index News Release summary
Transmission of material in this release is embargoed until 8:30 a.m. (ET), Tuesday, February 15, 2022

Technical information: (202) 691-7705 * ppi-info@bls.gov * www.bls.gov/ppi
Media contact: (202) 691-5902 * PressOffice@bls.gov


PRODUCER PRICE INDEXES - JANUARY 2022


The Producer Price Index for final demand increased 1.0 percent in January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This rise followed advances of 0.4 percent in December 2021 and 0.9 percent in November. (See table A.) On an unadjusted basis, final demand prices moved up 9.7 percent for the 12 months ended January 2022.

In January, the index for final demand services rose 0.7 percent, and prices for final demand goods moved up 1.3 percent.

Prices for final demand less foods, energy, and trade services increased 0.9 percent in January 2022, the largest increase since rising 1.0 percent in January 2021. For the 12 months ended January 2022, the index for final demand less foods, energy, and trade services moved up 6.9 percent.

Final Demand

Final demand services: Prices for final demand services advanced 0.7 percent in January, the same as in December. Three-fourths of the rise in January can be traced to a 0.9-percent increase in the index for final demand services less trade, transportation, and warehousing. Likewise, margins for final demand trade services moved up 0.6 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand transportation and warehousing services were unchanged.

{snip}

________________
The Producer Price Index for February 2022 is scheduled to be released on Tuesday, March 15, 2022 at 8:30 a.m. (ET).

*****
Recalculation of Seasonal Adjustment Factors

Effective with this release, seasonal adjustment factors have been recalculated to reflect price-movement patterns during 2021 for the Final Demand-Intermediate Demand (FD-ID) system and commodity-grouping indexes. This routine annual recalculation may affect previously published seasonally adjusted indexes and percent changes for January 2017 through December 2021.

{snip}

* * * * *

[center]Facilities for Sensory Impaired[/center]

Information from these releases will be made available to sensory impaired individuals upon request. Voice phone: 202-691-5200, Federal Relay Services: 1-800-877-8339.

-- -- -- -- -- --

This is more than expected.

-- -- -- -- -- --

ECONOMY * U.S. ECONOMY

Economists Expect Pickup in Producer Prices for January

December's rise in prices that suppliers charge businesses and other customers was smallest in 13 months

https://www.wsj.com/articles/producer-prices-inflation-january-2022-11644876284

By Gwynn Guilford
https://twitter.com/sinoceros
gwynn.guilford@wsj.com
Feb. 15, 2022 5:30 am ET

Prices that suppliers charged businesses and other customers are expected to have accelerated in January, pushed up by pandemic-related disruptions and continued strength in consumer demand.

Economists surveyed by The Wall Street Journal estimate the Labor Department on Tuesday will report the producer-price index, which generally reflects supply conditions in the economy, rose a seasonally adjusted 0.5% in January from the prior month, a pickup from December's 0.3% rise, which was the smallest monthly gain in 13 months. Economists generally expect that producer prices slowed on a 12-month basis, after rising 9.7% in December and 9.8% in November.

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Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Wholesale prices rise 1% in January, up 9.7% over the past year (Original Post) mahatmakanejeeves Feb 2022 OP
The Rate Continues To Recede WHITT Feb 2022 #1
The raise in wholesale prices is the result of consumers that refuse to vaccinate. LiberalFighter Feb 2022 #2
If you think that's bad ... mahatmakanejeeves Feb 2022 #3
U.S. Producer-Price Inflation Stays Hot, Reinforcing Fed's Plan to Start Raising Rates mahatmakanejeeves Feb 2022 #4
Corporate Profits Are Up And In Some Cases, At Record Highs... GB_RN Feb 2022 #5

mahatmakanejeeves

(56,904 posts)
3. If you think that's bad ...
Tue Feb 15, 2022, 10:12 AM
Feb 2022

This is an annual rate.

Macro Matters

January 20, 2022
3:59 AM EST
Last Updated a month ago

German producer prices register record 24.2% jump in December

Reuters

BERLIN, Jan 20 (Reuters) - German producer prices rose 24.2% year on the year in December, with the record annual jump driven by higher energy prices, official data showed on Thursday.

The jump from the previous December was the largest year-on-year increase for any month since the Federal Statistics Office began compiling the producer price numbers in 1949, the office said.

December's figures marked the third consecutive month of very high numbers after October and November showed increases of 18.4% and 19.2% respectively. read more

The average expectation among analysts polled by Reuters was an annual increase of 19.4%.

{snip}

mahatmakanejeeves

(56,904 posts)
4. U.S. Producer-Price Inflation Stays Hot, Reinforcing Fed's Plan to Start Raising Rates
Tue Feb 15, 2022, 11:07 AM
Feb 2022
Bloomberg

U.S. Producer-Price Inflation Stays Hot, Reinforcing Fed’s Plan to Start Raising Rates

Olivia Rockeman
Tue, February 15, 2022, 9:39 AM

(Bloomberg) -- Prices paid to U.S. producers jumped in January by more than forecast, pointing to persistent inflationary pressures as companies contend with supply-chain and labor constraints.

The producer price index for final demand increased 9.7% from January of last year and 1% from the prior month, Labor Department data showed Tuesday. The gain from December was the largest in eight months. The median forecasts in a Bloomberg survey of economists called for a 9.1% year-over-year increase and a 0.5% monthly advance.

“Inflation is everywhere and it seems to be gathering both breadth and momentum,” Stephen Stanley, chief economist at Amherst Pierpont Securities LLC, said in a note.

The figures, which reflected broad increases across categories, may bolster the case for the Federal Reserve to be more aggressive on raising interest rates and shrinking its bond holdings in the coming months. Transportation bottlenecks, robust demand and labor constraints experienced through 2021 have carried over into this year and risk keeping price pressures well-elevated.

{snip}

GB_RN

(2,267 posts)
5. Corporate Profits Are Up And In Some Cases, At Record Highs...
Tue Feb 15, 2022, 11:55 AM
Feb 2022

To raise stock prices, buybacks were made using Paycheck Protection Act money and CEOs got raises while employees still got laid off. Now, companies say that no one wants to work (who wants to work for less-than-livable wages and/or bad working conditions? ). So, they say they have to raise prices to make the same products they've been making with the same short workforce for the last two years, because they can, not because they're needed or because they're suddenly paying anyone but the CEO, et al, more. And then on cue, everyone screams, "OMG, inflation!"

But no one is looking at those corporate profits and saying, "Hey, wait just a damned minute!"
If companies were raising prices in reaction to real cost increases, then their profits wouldn't be increasing, they'd be flat, or only increased as a percentage of increased sales. That's not the case at all. These profits are RECORD level, which means that the price increases are pure profit. We're being gouged, and yet the GOPQ-balls are screaming about inflation like it's routine: The GOPQ-balls are distracting everyone with a carnival act of anger over inflation, so that rich bastard CEOs can pick our pockets without anyone realizing what's going on. The Federal Reserve has fallen for the stunt and is talking interest rate hikes.

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