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Producer Price Index rose 0.7% in August, ex Fd & Engy up 0.6%
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The Producer Price Index for final demand increased 0.7 percent in August, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices moved up 1.0 percent in July, the same as in June. On an unadjusted basis, the final demand index rose 8.3 percent for the 12 months ended in August, the largest advance since 12-month data were first calculated in November 2010.
Leading the August increase in the index for final demand, prices for final demand services rose 0.7 percent. The index for final demand goods moved up 1.0 percent.
Prices for final demand less foods, energy, and trade services moved up 0.3 percent in August after increasing 0.9 percent in July. For the 12 months ended in August, the index for final demand less foods, energy, and trade services rose 6.3 percent, the largest advance since 12-month data were first calculated in August 2014.
Final Demand
Final demand services: Prices for final demand services moved up 0.7 percent in August, the eighth consecutive advance. Two-thirds of the broad-based increase in August can be traced to the index for final demand trade services, which rose 1.5 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand transportation and warehousing services and for final demand services less trade, transportation, and warehousing climbed 2.8 percent and 0.1 percent, respectively.
Product detail: Over 30 percent of the August increase in prices for final demand services can be traced to a 7.8-percent rise in margins for health, beauty, and optical goods retailing. The indexes for transportation of passengers (partial), chemicals and allied products wholesaling, bundled wired telecommunications access services, machinery and equipment parts and supplies wholesaling, and traveler accommodation services also moved higher. Conversely, prices for hospital outpatient care fell 1.5 percent. The indexes for hardware, building materials, and supplies retailing and for securities brokerage, dealing, investment advice, and related services also decreased.
Final demand goods: The index for final demand goods moved up 1.0 percent in August after increasing 0.6 percent in July. In August, half of the broad-based advance can be attributed to a 2.9-percent rise in prices for final demand foods. The indexes for final demand goods less foods and energy and for final demand energy also moved higher, 0.6 percent and 0.4 percent, respectively.
Product detail: About a quarter of the August advance in prices for final demand goods can be attributed to an 8.5-percent rise in the index for meats. Prices for residential natural gas, industrial chemicals, processed young chickens, motor vehicles, and steel mill products also moved higher. In contrast, the index for iron and steel scrap decreased 3.7 percent. Prices for diesel fuel and for natural, processed, and imitation cheese also moved lower.
Posted: September 10, 2021 Friday 08:30 AM