Producer Price Index (PPI)

The Producer Price Index (PPI) is a measure of the average change over time in the selling prices received by domestic producers for thief goods and services.  It is calculated by the Bureau of Labor Statistics (BLS) of the U.S. Department of Labor and is based on the price changes from the perspective of the seller, unlike the Consumer Price Index (CPI), which measures the perspective of the buyer.

2023 Schedule of Releases for the PPI: October 11 / November 15 / December 13

Thursday September 14th

The PPI increased by 0.7% in August, coming in hotter than expected. On an annual basis, PPI doubled from 0.8% to 1.6%. Core PPI, which also strips out volatile food and energy prices, rose by 0.2%, with the year-over-year reading dropping from 2.4% to 2.2%.

 

What’s the bottom line? While annual PPI also moved higher in the wrong direction, it was coming from a very low level and remains extremely muted, well below last year’s 11.7% peak. Plus, much of the increase in wholesale inflation was also due to rising energy prices, like we saw with consumer inflation.

 

Friday August 11th

8:36 AM : The Producer Price Index, which measures wholesale inflation, was reported for the month of July. The Headline PPI figure was up 0.3%, which was above expectations of 0.2%. On a year over year basis PPI increased by 0.6% from 0.2% to 0.8%, which was higher than the 0.7% estimate. Core PPI, which strips out food and energy prices, increased by 0.3%, which was above expectations of 0.2%. Year over year Core PPI remained flat at 2.4%, which was just above the 2.3% estimate.

Reaction: 10:14 AM: Mortgage Bonds are -14bp at 98.47 (Price Down Yield Up) and 10 year treasury is up 3 to 4.1310%

 

Thursday July 13th 8:30 AM

8:35 AM : The Producer Price Index, which measures wholesale inflation, was reported for the month of June. The Headline PPI figure was up 0.1%, which was below expectations of 0.2%. On a year over year basis PPI decreased by 0.8% to 0.1%, which was lower than the 0.4% estimate,. Core PPI, which strips out food and energy prices, increased by 0.1%, which was below expectations of 0.2%, and decreased by 0.4% to 2.4% year over year, which was below the 2.6% estimate.

 

9:46 AM Reaction - Mortgage Bonds on 5.5% coupon are up 41 bp to 100.02 (Price Higher Yield Lower) 10 year Treasury is down 7 bp in yield to 3.7950%.

July 10th, 2023 Last Month the PPI Came in at 2.8% and that is what the market expects for this month.

Wednesday June 14th 8:30 AM

8:38 AM : The Producer Price Index, which measures wholesale inflation, was reported for the month of May. The Headline PPI figure was down 0.3%, which was below expectations of a 0.1% decline. On a year over year basis PPI decreased by 1.2% from 2.3% to 1.1%, which was lower than the 1.5% estimate,. Core PPI, which strips out food and energy prices, decreased by 0.2%, which was in line with expectations. Year over year Core PPI decreased by 1.4% to 2.8%, which was below the 2.9% estimate.

 

Monday June 12th 2023

Market is expecting the PPI to remain the same as last month at 2.3% and the Core at 3.2%

 

Thursday May 11th 2023

8:42 AM : The Producer Price Index, which measures wholesale inflation, was reported for the month of April. The Headline PPI figure was up 0.2%, which was below expectations of 0.3%. On a year over year basis PPI decreased by 0.4% from 2.7% to 2.3%, which was lower than the 2.4% estimate. Core PPI, which strips out food and energy prices, increased by 0.2%, which was in line with expectations. Year over year Core PPI decreased by 0.2% to 3.2%, which was just below the 3.3% estimate.

Monday May 8th 2023

Marketing is expecting the PPI to be 2.5% from last month's 2.7% and the core PPI to be 3.3% from last month's 3.4%

Previous Month information

Thursday April 14th 2023

8:41 AM : The Producer Price Index, which measures wholesale inflation, was reported for the month of March. The Headline PPI figure was down 0.5%, which was below expectations of no change. On a year over year basis PPI decreased by 2.2% from 4.9% to 2.7%, which was lower than the 3% estimate,. Core PPI, which strips out food and energy prices, decreased by 0.1%, which was below expectations of a 0.3% gain. Year over year Core PPI decreased by 1% to 3.4%, matching the estimates.

 

John Marbury - 205-266-5669 john.marbury@southstatebank.com  NMLS# 740833

 

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