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Producer Price Index rose 0.5% in September, ex Fd & Engy up 0.6%
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The Producer Price Index for final demand increased 0.5 percent in September, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices moved up 0.7 percent in August and 1.0 percent in July. On an unadjusted basis, the final demand index rose 8.6 percent for the 12 months ended in September, the largest advance since 12-month data were first calculated in November 2010.
Nearly 80 percent of the September increase in the index for final demand can be traced to a 1.3-percent rise in prices for final demand goods. The index for final demand services moved up 0.2 percent.
Prices for final demand less foods, energy, and trade services moved up 0.1 percent in September after increasing 0.3 percent in August. For the 12 months ended in September, the index for final demand less foods, energy, and trade services rose 5.9 percent.
Final Demand
Final demand goods: The index for final demand goods moved up 1.3 percent in September, the largest increase since a 1.5-percent rise in May. In September, 40 percent of the broad-based advance can be attributed to a 2.8-percent jump in prices for final demand energy. The indexes for final demand goods less foods and energy and for final demand foods also moved up, 0.6 percent and 2.0 percent, respectively.
Product detail: Leading the advance in the index for final demand goods, prices for gasoline rose 3.9 percent. The indexes for beef and veal, residential electric power, fresh and dry vegetables, gas fuels, and primary basic organic chemicals also moved higher. In contrast, prices for plastic resins and materials decreased 3.9 percent. The indexes for corn and for residual fuels also fell.
Final demand services: Prices for final demand services moved up 0.2 percent in September, the ninth consecutive advance. Leading the increase in September, the index for final demand trade services rose 0.9 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand services less trade, transportation, and warehousing advanced 0.2 percent. Conversely, the index for final demand transportation and warehousing services fell 4.0 percent.
Product detail: Over two-thirds of the September increase in prices for final demand services can be traced to margins for fuels and lubricants retailing, which rose 11.6 percent. The indexes for machinery and equipment wholesaling, hospital inpatient care, automobiles and automobile parts retailing, portfolio management, and truck transportation of freight also moved up. In contrast, prices for airline passenger services fell 16.9 percent. The indexes for health, beauty, and optical goods retailing and for bundled wired telecommunications access services also declined.
Posted: October 14, 2021 Thursday 08:30 AM