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Producer Price Index increased 0.7% in August 2023, ex Fd & Engy up 0.1%
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The Producer Price Index for final demand increased 0.7 percent in August, seasonally adjusted, after rising 0.4 percent in July, the U.S. Bureau of Labor Statistics reported today. The August advance is the largest increase in final demand prices since moving up 0.9 percent in June 2022. On an unadjusted basis, the index for final demand rose 1.6 percent for the 12 months ended in August.
In August, 80 percent of the rise in final demand prices is attributable to a 2.0-percent jump in the index for final demand goods. Prices for final demand services advanced 0.2 percent.
The index for final demand less foods, energy, and trade services increased 0.3 percent in August, the same as in July. For the 12 months ended in August, prices for final demand less foods, energy, and trade services rose 3.0 percent, the largest advance since moving up 3.4 percent for the 12 months ended in April.
Final Demand
Final demand goods: The index for final demand goods jumped 2.0 percent in August, the largest advance since increasing 2.1 percent in June 2022. The August rise is mostly attributable to prices for final demand energy, which surged 10.5 percent. The index for final demand goods less foods and energy edged up 0.1 percent. In contrast, prices for final demand foods declined 0.5 percent.
Product detail: Over 60 percent of the August rise in the index for final demand goods can be traced to prices for gasoline, which jumped 20.0 percent. The indexes for diesel fuel, jet fuel, home heating oil, beverages and beverage materials, and iron and steel scrap also moved higher. Conversely, prices for fresh and dry vegetables fell 11.5 percent. The indexes for residential electric power and for industrial chemicals also decreased.
Final demand services: The index for final demand services rose 0.2 percent in August after increasing 0.5 percent in July. Leading the advance in August, prices for final demand services less trade, transportation, and warehousing moved up 0.3 percent. The index for final demand transportation and warehousing services jumped 1.4 percent. In contrast, margins for final demand trade services declined 0.3 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.)
Product detail: A 1.1-percent increase in the index for residential real estate services (partial) was a major factor in the August rise in prices for final demand services. The indexes for truck transportation of freight; machinery, equipment, parts, and supplies wholesaling; automotive fuels and lubricants retailing; services related to securities brokerage and dealing (partial); and residential real estate loans (partial) also moved higher. Conversely, margins for chemicals and allied products wholesaling fell 4.7 percent. The indexes for food wholesaling and for deposit services (partial) also decreased.
Posted: September 14, 2023 Thursday 08:30 AM