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Producer Price Index increased 0.5% in September 2023, ex Fd & Engy up 0.1%
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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 rose 0.7 percent in August and 0.6 percent in July. (See table A.) On an unadjusted basis, the index for final demand advanced 2.2 percent for the 12 months ended in September, the largest increase since moving up 2.3 percent for the 12 months ended in April.
Leading the increase in the final demand index in September, prices for final demand goods rose 0.9 percent. The index for final demand services advanced 0.3 percent.
Prices for final demand less foods, energy, and trade services increased 0.2 percent in September, the fourth consecutive advance. For the 12 months ended in September, the index for final demand less foods, energy, and trade services moved up 2.8 percent.
Final Demand
Final demand goods: The index for final demand goods moved up 0.9 percent in September, the third consecutive increase. Nearly three-quarters of the broad-based September advance is attributable to a 3.3-percent rise in prices for final demand energy. The indexes for final demand foods and for final demand goods less foods and energy moved up 0.9 percent and 0.1 percent, respectively.
Product detail: Over 40 percent of the September increase in prices for final demand goods can be traced to a 5.4-percent rise in the index for gasoline. Prices for jet fuel, processed young chickens, meats, electric power, and diesel fuel also advanced. In contrast, the index for fresh and dry vegetables declined 13.9 percent. Prices for wood pulp and for utility natural gas also fell.
Final demand services: The index for final demand services advanced 0.3 percent in September following a 0.2-percent rise in August. Over 60 percent of the September increase is attributable to prices for final demand services less trade, transportation, and warehousing, which climbed 0.3 percent. The index for final demand trade services moved up 0.5 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Conversely, prices for final demand transportation and warehousing services declined 0.4 percent.
Product detail: A 13.9-percent jump in the index for deposit services (partial) was a major factor in the September rise in prices for final demand services. The indexes for machinery, equipment, parts, and supplies wholesaling; health, beauty, and optical goods retailing; traveler accommodation services; outpatient care (partial); and application software publishing also moved higher. In contrast, prices for airline passenger services fell 2.1 percent. The indexes for automobile retailing (partial) and for bundled wired telecommunications access services also decreased.
Posted: October 11, 2023 Wednesday 08:30 AM