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Producer Price Index rose 1.0% in June, ex Fd & Engy up 1.0%
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The Producer Price Index for final demand increased 1.0 percent in June, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.8 percent in May and 0.6 percent in April. On an unadjusted basis, the final demand index moved up 7.3 percent for the 12 months ended in June, the largest advance since 12-month data were first calculated in November 2010.
Nearly 60 percent of the June advance in the final demand index can be traced to a 0.8-percent increase in prices for final demand services. The index for final demand goods moved up 1.2 percent.
Prices for final demand less foods, energy, and trade services rose 0.5 percent in June following an increase of 0.7 percent in May. For the 12 months ended in June, the index for final demand less foods, energy, and trade services moved up 5.5 percent, the largest advance since 12-month data were first calculated in August 2014.
Final Demand
Final demand services: Prices for final demand services rose 0.8 percent in June, the sixth consecutive advance. Seventy percent of the broad-based increase in June is attributable to margins for final demand trade services, which moved up 2.1 percent. (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 rose 0.3 percent and 0.9 percent, respectively.
Product detail: Twenty percent of the June increase in the index for final demand services can be traced to margins for automobiles and automobile parts retailing, which rose 10.5 percent. The indexes for machinery and vehicle wholesaling; hardware, building materials, and supplies retailing; guestroom rental; professional and commercial equipment wholesaling; and transportation of passengers (partial) also moved higher. Conversely, margins for apparel wholesaling fell 6.0 percent. The indexes for machinery and equipment parts and supplies wholesaling and for gaming receipts (partial) also declined.
Final demand goods: Prices for final demand goods increased 1.2 percent in June after rising 1.5 percent in May. Nearly 60 percent of the broad-based advance in June can be traced to the index for final demand goods less foods and energy, which moved up 1.0 percent. Prices for final demand energy and for final demand foods rose 2.1 percent and 0.8 percent, respectively.
Product detail: Within the index for final demand goods in June, prices for industrial chemicals rose 4.5 percent. Prices for gasoline, meats, electric power, processed poultry, and motor vehicles also moved higher. In contrast, the index for oilseeds fell 11.7 percent. Prices for diesel fuel and for distilled and bottled liquor (excluding brandy) also declined.
Posted: July 14, 2021 Wednesday 08:30 AM