Producer Price Index for Final Demand Declines 0.5% in December—Up 6.2% For All of 2022

The Bureau of Labor Statistics (BLS) reported today (1-18-22) that the Producer Price Index (PPI) for final demand, seasonally adjusted, declined 0.5% in December, following a 0.2% increase in November and a 0.4% increase in October. On an unadjusted basis, the index for final demand advanced 6.2% in 2022, after rising 10.0% in 2021.

In December, the decrease in the final demand can be attributed to a 1.6% decline in prices for final demand goods. In contrast, the index for final demand services increased 0.1%.

Prices for final demand less foods, energy, and trade services inched 0.1% higher in December, after increasing 0.3% in November and 0.2% in October. The index for final demand less foods, energy, and trade services increased 4.6% in all of 2022, following a 7.0% increase in 2021.