November 2023 Consumer and Producer Price Indices (incl. Forest Products)

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Consumer Price Index

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1% in November on a seasonally adjusted basis (0.0% expected), after being unchanged in October. Over the last 12 months, the all-items index increased 3.1% before seasonal adjustment.

The index for shelter continued to rise in November, offsetting a decline in the gasoline index. The energy index fell 2.3% over the month as a 6.0-percent decline in the gasoline index more than offset increases in other energy component indexes. The food index increased 0.2% in November, after rising 0.3% in October. The index for food at home increased 0.1% over the month and the index for food away from home rose 0.4%.

The index for all items less food and energy rose 0.3% in November, after rising 0.2% in October. Indexes which increased in November include rent, owners' equivalent rent, medical care, and motor vehicle insurance. The indexes for apparel, household furnishings and operations, communication, and recreation were among those that decreased over the month.

The all-items index rose 3.1% for the 12 months ending November, a smaller increase than the 3.2-percent increase for the 12 months ending October. The index for all items less food and energy rose 4.0% over the last 12 months, as it did for the 12 months ending October. The energy index decreased 5.4% for the 12 months ending November, while the food index increased 2.9% over the last year.

 

Producer Price Index

The Producer Price Index for final demand (PPI-FD) was unchanged in November, seasonally adjusted (+0.1% expected). Final-demand prices decreased 0.4% in October and rose 0.4% in September. On an unadjusted basis, the index for final demand increased 0.9% for the 12 months ended in November.

In November, the indexes for both final-demand goods and for final-demand services were unchanged.

The index for final demand less foods, energy, and trade services edged up 0.1% in November, the sixth consecutive advance. For the 12 months ended in November, prices for final demand less foods, energy, and trade services rose 2.5%.

Final Demand

Final-demand goods: The index for final-demand goods was unchanged in November after dropping 1.4% in October. In November, price increases of 0.6% for final-demand foods and 0.2% for final-demand goods less foods and energy offset a 1.2-percent decrease in the index for final-demand energy.

Product detail: Within final-demand goods in November, prices for chicken eggs jumped 58.8%. The indexes for fresh fruits and melons, utility natural gas, electric power, and carbon steel scrap also moved higher. In contrast, prices for gasoline fell 4.1%. The indexes for processed poultry, industrial chemicals, jet fuel, and liquefied petroleum gas also moved lower.

Final-demand services: The index for final-demand services remained unchanged in November, the same as in October. In November, prices for final-demand services less trade, transportation, and warehousing edged up 0.1%. Conversely, the indexes for final-demand trade services and for final-demand transportation and warehousing services declined, 0.2% and 0.5%, respectively. (Trade indexes measure changes in margins received by wholesalers and retailers.)

Product detail: Within the index for final-demand services in November, prices for traveler accommodation services rose 4.0%. The indexes for deposit services (partial); health, beauty, and optical goods retailing; food and alcohol wholesaling; and apparel, footwear, and accessories retailing also advanced. In contrast, margins for automobile retailing (partial) declined 5.1%. The indexes for chemicals and allied products wholesaling, portfolio management, furniture retailing, and truck transportation of freight also fell.

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The not-seasonally adjusted price indexes we track were mostly lower on a MoM basis and all lower YoY.

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The foregoing comments represent the general economic views and analysis of Delphi Advisors, and are provided solely for the purposes of information, instruction and discourse. They do not constitute a solicitation or recommendation regarding any investment.