2017 Economic Calendar
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PPI-FD  
Released On 8/10/2017 8:30:00 AM For Jul, 2017
PriorConsensusConsensus RangeActual
PPI-FD - M/M change0.1 %0.1 %0.0 % to 0.3 %-0.1 %
PPI-FD - Y/Y change2.0 %1.9 %
PPI-FD less food & energy - M/M change0.1 %0.2 %0.1 % to 0.3 %-0.1 %
PPI-FD less food & energy - Y/Y change1.9 %1.8 %
PPI-FD less food, energy & trade services - M/M change0.2 %0.2 %0.2 % to 0.2 %0.0 %
PPI-FD less food, energy & trade services - Y/Y change2.0 %1.9 %

Highlights
Lack of inflation has been the issue this year but July's producer price report raises new concerns, that is disinflation. Headline prices fell an unexpected 0.1 percent with the less food & energy reading also at minus 0.1 percent and the less food, energy & trade services no better than unchanged. Year-on-year rates are all down 1 tenth, to 1.9 percent overall with less food & energy at 1.8 percent and the third reading which also excludes services at 1.9 percent.

And services are the major concern in this report. Overall services fell 0.2 percent in July with the closely watched trade services down 0.5 percent and reflecting price weakness for chemicals and also machinery. Other readings include a 0.1 percent decline for total goods, a 3rd straight monthly decline for energy, down 0.3 percent, and no change for foods.

Prices this year, in part reflecting lack of wage traction, have been unusually weak and if tomorrow's consumer price report proves no better than today's wholesale price report, doubts over Federal Reserve intentions to further remove stimulus, including the initiation of balance sheet unwinding, will very likely build.

Recent History Of This Indicator
Like other inflationary data, producer prices have been soft and could only manage a 0.1 percent gain overall as well as for the core (less food and energy). With food prices flat in June and energy down, forecasters are calling for another 0.1 percent increase overall but a slightly better 0.2 percent for the core (less food and energy).

Definition
The Producer Price Index (PPI) of the Bureau of Labor Statistics (BLS) is a family of indexes that measures the average change over time in the prices received by domestic producers of goods and services. PPIs measure price change from the perspective of the seller. Effective with the January 2014 PPI data release in February 2014, BLS transitioned from the Stage of Processing (SOP) to the Final Demand-Intermediate Demand (FD-ID) aggregation system. The headline PPI (for Final Demand) measures price changes for goods, services, and construction sold to final demand: personal consumption, capital investment, government purchases, and exports.  Why Investors Care
 
[Chart]
With the redefined and expanded PPI Final Demand series, energy still creates monthly volatility. However, services and construction have softened the headline and core numbers.
Data Source: Haver Analytics
 
[Chart]
A sluggish economy in 2013 and 2014 slowed inflation at the producer level.
Data Source: Haver Analytics
 
 

2017 Release Schedule
Released On: 1/132/143/144/135/116/137/138/109/1310/1211/1412/12
Release For: DecJanFebMarAprMayJunJulAugSepOctNov
 


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