PPI: Headline Down 0.6%; Core Prices Up 0.1%

In February, the Producer Price Index for finished goods fell 0.6%, following a large increase of 1.4% in January. The volatility over these two months has largely been driven by changes in energy prices. The PPI has increased quickly in recent months and has been very volatile largely due to swings in energy prices. The core index, which excludes prices of food and energy products, rose 0.1% over the month. From a year prior, the top line index was 4.5% higher, lower than January’s year-over-year increase of 5.0%, but still a reverse from a negative change as recently as last October. The core index was 0.9% higher from a year earlier.

	Feb	Jan	Dec	Nov	Oct	Sep
Headline Index
M/M % Change	-0.6	1.4	0.4	1.7	0.2	-0.7
Y/Y % Change	4.5	5.0	4.5	2.2	- 2.3	- 4.9
Core Prices
M/M % Change	0.1	0.3	0.0	0.5	-0.5	-0.2
Y/Y % Change	0.9	1.0	0.9	1.2	0.7	1.7

10.03.17 (Source: Bureau of Labor Statistics)