Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Businessweek Archives

Slowing services inflation

Repeat after inflation is slowing, not rising. In particular, producer price inflation in the “traditional service industries” is only 0.6%, on a year over year basis, down from 1.8% in December.

But you would never know this, from the coverage of today’s PPI report. The majority of the economy is services, not manufacturing. Yet most reporters (slap, there I go again) persist in focusing on the producer price index for goods.

In fact, the BLS producer price index for “traditional service industries” is arguably the best gauge of inflationary pressures that we have. That includes information, healthcare, finance, real estate, legal services, architecture services, management consulting, advertising, employment services, waste collection, computer training, amusement parks, golf courses, fitness centers, hotels, and a few other categories”. Many of these industries are business-to-business, so they don’t show up in the CPI, but they are important neverless.

Here is the year over year growth in producer prices for the traditional service industries.

I like this chart…

blog comments powered by Disqus