The producer price index (PPI) for final demand fell 0.2 percent in November. Weakness extended beyond the energy component. Excluding food, energy and trade services, prices were flat last month.
Services Prices Trending Lower
- The PPI for final demand fell 0.2 percent in November, reversing last month’s increase. Prices for goods led the index lower, with a drop not only in energy but also food and core goods. Core goods prices are now down two straight months.
- Services prices ticked up 0.1 percent. With energy costs falling, price growth for transportation services is moderating, while core services prices are decelerating.
Pipeline Pressures Easing
- Excluding trade services, which are measured by margins instead of selling prices, prices fell 0.3 percent. Ex-food, energy and trade services, price growth is slowing on a year-ago basis.
- Price pressures remain modest back in the pipeline. Processed goods fell for the second month in a row, with declines in food, energy and core components. Unprocessed goods prices are also declining, with core raw materials now lower than a year ago
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