PPI Flat, Missed 0.3% M/M Estimate…

ByGary Kaltbaum
Released On 11/16/2016 8:30:00 AM For Oct, 2016
Prior Consensus Consensus Range Actual
PPI-FD – M/M change 0.3 % 0.3 % 0.2 % to 0.4 % 0.0 %
PPI-FD – Y/Y change 0.7 % 0.8 %
PPI-FD less food & energy – M/M change 0.2 % 0.2 % 0.1 % to 0.3 % -0.2 %
PPI-FD less food & energy – Y/Y change 1.2 % 1.2 %
PPI-FD less food, energy & trade services – M/M change 0.3 % -0.1 %
PPI-FD less food, energy & trade services – Y/Y change 1.5 % 1.6 %

Recent History Of This Indicator
At a headline gain of 0.3 percent and a core increase of 0.2 percent, producer prices showed life in September and more is expected for October with the consensus at the same respective gains, 0.3 percent overall and 0.2 percent for the core. Goods prices did snap back in September but not service prices which will have to accelerate to signal wider inflationary pressures.
Definition
The Producer Price Index (PPI) of the Bureau of Labor Statistics (BLS) is a family of indexes that measures the average change over time in the prices received by domestic producers of goods and services. PPIs measure price change from the perspective of the seller. Effective with the January 2014 PPI data release in February 2014, BLS transitioned from the Stage of Processing (SOP) to the Final Demand-Intermediate Demand (FD-ID) aggregation system. The headline PPI (for Final Demand) measures price changes for goods, services, and construction sold to final demand: personal consumption, capital investment, government purchases, and exports