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Producer Price Index rose 0.3% in August, ex Fd & Engy up 0.3%
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The Producer Price Index for final demand increased 0.3 percent in August, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.6 percent in July and fell 0.2 percent in June. (See table A). On an unadjusted basis, the final demand index declined 0.2 percent for the 12 months ended in August.
In August, the rise in prices for final demand was led by a 0.5-percent increase in the index for final demand services. Prices for final demand goods also advanced, inching up 0.1 percent.
The index for final demand less foods, energy, and trade services moved up 0.3 percent in August, the same as in both July and June. For the 12 months ended in August, prices for final demand less foods, energy, and trade services increased 0.3 percent.
Final Demand
Final demand services: The index for final demand services rose 0.5 percent in August, the same as in July. In August, two-thirds of the advance can be traced to a 1.2-percent increase in margins for final demand trade services. (Trade indexes measure changes in margins received by wholesalers and retailers.) The indexes for final demand services less trade, transportation, and warehousing and for final demand transportation and warehousing services also moved up, 0.3 percent and 0.2 percent, respectively.
Product detail: Nearly 20 percent of the August advance in prices for final demand services is attributable to a 1.1-percent increase in margins for machinery, equipment, parts, and supplies wholesaling. The indexes for automobiles and automobile parts retailing; truck transportation of freight; food retailing; portfolio management; and securities brokerage, dealing, investment advice, and related services also rose. In contrast, margins for chemicals and allied products wholesaling declined 4.5 percent. The indexes for airline passenger services and investment banking also fell.
Final demand goods: Prices for final demand goods edged up 0.1 percent in August, the fourth consecutive increase. The August rise can be attributed to a 0.3-percent advance in the index for final demand goods less foods and energy. Conversely, prices for final demand foods fell 0.4 percent, and the index for final demand energy declined 0.1 percent.
Product detail: Among prices for final demand goods in August, the index for plastic resins and materials rose 4.0 percent. Prices for diesel fuel, gas fuels, packaged fluid milk and related products, and nonferrous scrap also moved higher. In contrast, the index for chicken eggs dropped 12.2 percent. Prices for home heating oil, gasoline, and ethanol also decreased.
Posted: September 10, 2020 Thursday 08:30 AM