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Producer Price Index rose 1.0% in July, ex Fd & Engy up 1.0%
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The Producer Price Index for final demand increased 1.0 percent in July, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 1.0 percent in June and 0.8 percent in May. On an unadjusted basis, the final demand index moved up 7.8 percent for the 12 months ended in July, the largest advance since 12-month data were first calculated in November 2010.
Nearly three-fourths of the July increase in the final demand index can be traced to a 1.1-percent advance in prices for final demand services. The index for final demand goods rose 0.6 percent.
Prices for final demand less foods, energy, and trade services moved up 0.9 percent in July, the largest advance since climbing 1.0 percent in January. For the 12 months ended in July, the index for final demand less foods, energy, and trade services rose 6.1 percent, the largest increase since 12-month data were first calculated in August 2014.
Final Demand
Final demand services: The index for final demand services rose 1.1 percent in July, the largest one-month increase since data were first calculated in December 2009. Nearly half of the broad-based advance in July is attributable to margins for final demand trade services, which jumped 1.7 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand services less trade, transportation, and warehousing and for final demand transportation and warehousing services also moved higher, 0.6 percent and 2.7 percent, respectively.
Product detail: About 20 percent of the July advance in prices for final demand services can be traced to margins for automobiles and automobile parts retailing, which climbed 11.2 percent. The indexes for airline passenger services; hospital outpatient care; machinery and equipment wholesaling; traveler accommodation services; and securities brokerage, dealing, investment advice, and related services also increased. In contrast, prices for portfolio management fell 1.8 percent. The indexes for chemicals and allied products wholesaling and for fuels and lubricants retailing also declined.
Final demand goods: The index for final demand goods moved up 0.6 percent in July following a 1.2-percent jump in June. Leading the July advance in prices for final demand goods, the index for final demand goods less foods and energy increased 1.0 percent. Prices for final demand energy rose 2.6 percent. Conversely, the index for final demand foods decreased 2.1 percent.
Product detail: Among prices for final demand goods in July, the index for tobacco products increased 2.7 percent. Prices for gasoline; diesel fuel; gas fuels; consumer, institutional, and commercial plastic products; and eggs for fresh use also moved higher. In contrast, the index for beef and veal fell 11.6 percent. Prices for residential electric power and for softwood lumber (not edge worked) also declined.
Posted: August 12, 2021 Thursday 08:30 AM