US Final demand goods less foods and energy Producer Price Index (PPI)

Understanding US Final demand goods less foods and energy Producer Price Index (PPI)

The index covers goods sold for final demand after excluding food and energy. The remainder comprises various consumer goods and investment goods whose prices are generally less directly driven by agricultural seasonality or fuel shocks. Goods used for further processing remain part of intermediate demand and are excluded. Unlike the full final demand goods index, this measure intentionally omits volatile components; unlike the aggregate final demand index, it contains no services or construction.

This is typically used to observe underlying goods price pressure, but it is not a complete measure of core inflation because services are excluded and shocks outside of food and energy remain. Month-on-month comparisons provide early signals of factory-gate price changes, while year-on-year comparisons make trends easier to identify when holiday schedules or seasonal adjustments cause noise. Data is published monthly and new periods may be revised. If weights, product categories, or the base period are updated, the historical series may change; therefore, growth rates should be compared on the same data version.