The Producer Price Index (PPI) excluding Food, Energy, and Transport in the United States increased to 2.6% in January 2024, according to the latest data from the Bureau of Labor Statistics. This figure represents a slight uptick from the previous month's reading of 2.5% in December 2023.
The PPI is a key economic indicator that measures the average change over time in the selling prices received by domestic producers for their goods and services. By excluding the volatile food, energy, and transport sectors, the PPI ex. Food/Energy/Transport provides a clearer picture of underlying inflationary pressures in the economy.
The January 2024 reading indicates a modest increase in prices for goods and services that are less influenced by temporary factors such as seasonal fluctuations or changes in energy prices. This suggests that overall inflationary pressures remain subdued, a positive sign for the economy.
The data, which was updated on 16 February 2024, compares the change in prices for January 2024 to the same month a year ago. It will be interesting to see how this trend develops in the coming months and if inflationary pressures continue to be well-contained by excluding the more volatile sectors of the economy.
