By Tom Burnett CFA
On February 15, 2022, the Bureau of Labor Statistics announced that the Producer Price Index increased 1.0% in January. This rate followed increases of 0.9% in November and 0.4% in December. This increase was the largest since the 1.2% figure for January 2021. For the 12 months ending in January, the PPI rose by 9.7%, compared to increases of 9.8% in both November and December 2021. The primary source of the inflation was goods not services in January. Prices for goods rose by 1.7% in January, while services rose by just 0.7%.
The PPI Core Index (excluding food and energy) rose by 0.9% in January, up from 0.4% in December. For the latest 12 months, the Core Index rose by 6.9%. The comparable figure for December was 7.0%.
The next PPI announcement will be March 15, 2022.
Tom Burnett CFA is Director of Research