Producer Price Index for Final Demand Declines 0.1% Month-Over-Month in December

The Bureau of Labor Statistics (BLS) reported on Friday (1-12-24) that the Producer Price Index (PPI) for final demand, seasonally adjusted, declined 0.1% in December. This follows a 0.1% decline in November and a 0.4% decline in October. On an unadjusted basis, the index for final demand rose 1.0% in 2023, after increasing 6.4% in 2022.

The BLS is reporting that the December decline in the index for final demand goods is attributable to a 0.4% drop in prices for final demand goods. The final demand services index was unchanged from November.

The index for final demand less foods, energy, and trade services increased 0.2% in December, after edging up 0.1% in both November and October. The December increase marks the seventh consecutive monthly advance. Prices for final demand less foods, energy, and trade services increased 2.5% in 2023 following a 4.7% increase in 2022.