The US producer price index for final demand gained 0.2 per cent in December, based on the latest data coming from America’s Bureau of Labor Statistics.
Final demand prices increased 9.7 per cent in 2021 on an unadjusted basis, the largest calendar-year increase since data were first calculated in 2010. The increase in the final demand index in December can be attributed to a 0.5-per cent increase in final demand service costs.
The index for final demand items, on the other hand, fell by 0.4 per cent. Following a 0.8 per cent gain in November, prices for final demand excluding food, energy, and trade services rose 0.4 per cent in December.
Following a 1.3 per cent increase in 2020, the final demand index excluding foods, energy, and trade services increased 6.9 per cent in 2021. Having a 0.9 per cent increase in November, prices for final demand services increased by 0.5 per cent in December.
Margin increases for final demand trade services, which increased by 0.8 per cent, account for more than half of the broad-based gain in December. Prices for final demand services excluding trade, transportation, and warehousing grew 0.2 per cent and 1.7 per cent, respectively, for final demand transportation and warehousing services.
The final demand goods index fell 0.4 per cent in December, the first drop since April 2020, when it fell 2.8 per cent.
Final demand energy prices fell 3.3 per cent in December leading the fall.
The final demand foods index declined 0.6 per cent. Prices for final demand products, excluding food and energy, increased by 0.5 per cent.
Following gains of 1.0 per cent in November and 0.6 per cent in October, the stock market has risen again.