Producer prices decreased 0.7% in January

The Producer Price Index for final demand increased 0.7% in January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices declined 0.2% in December 2022 and advanced 0.3% in November.  On an unadjusted basis, the index for final demand rose 6.0% for the 12 months ended January 2023.

In January, a 1.2% rise in prices for final demand goods led the advance in the final demand index. Prices for final demand services also moved higher, increasing 0.4%.

Prices for final demand goods moved up 1.2% in January, the largest increase since rising 2.1% in June 2022. Leading the January increase, the index for final demand energy increased 5.0%. Prices for final demand foods decreased 1.0%. Conversely, the index for final demand goods less foods and energy advanced 0.6%.

Prices for final demand services advanced 0.4% in January, the same as in December. The January increase can be attributable to prices for final demand services less trade, transportation, and warehousing, which rose 0.6%. Margins for final demand trade services moved up 0.2%. Prices for final demand transportation and warehousing services also advanced 0.2%.

Read the BLS release.