Research >> Economics
Producer Price Index rose 0.2% in July, ex Fd & Engy -0.1%
The Producer Price Index for final demand advanced 0.2 percent in July, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices moved up 0.1 percent in both June and May. On an unadjusted basis, the final demand index rose 1.7 percent for the 12 months ended in July.
In July, the rise in final demand prices was led by a 0.4-percent increase in the index for final demand goods. Prices for final demand construction rose 0.6 percent. In contrast, the index for final demand services declined 0.1 percent.
The index for final demand less foods, energy, and trade services fell 0.1 percent in July, the first decrease since declining 0.1 percent in October 2015. For the 12 months ended in July, prices for final demand less foods, energy, and trade services moved up 1.7 percent.
Final demand goods: The index for final demand goods rose 0.4 percent in July, the largest increase since a 1.0-percent jump in March. Over 80 percent of the broad-based advance is attributable to prices for final demand energy, which rose 2.3 percent. The index for final demand goods less foods and energy inched up 0.1 percent, and prices for final demand foods increased 0.2 percent.
Product detail: Over half of the July rise in the index for final demand goods can be traced to prices for gasoline, which advanced 5.2 percent. The indexes for diesel fuel, electric power, corn, beef and veal, and tobacco products also advanced. Conversely, prices for jet fuel fell 3.5 percent. The indexes for pork and carbon steel scrap also decreased.
Final demand services: The index for final demand services declined 0.1 percent in July after rising for five consecutive months. The decrease is attributable to prices for final demand services less trade, transportation, and warehousing, which moved down 0.3 percent. In contrast, the indexes for final demand trade services and for final demand transportation and warehousing services both advanced 0.2 percent.
Product detail: A major factor in the decline in prices for final demand services was the index for guestroom rental, which moved down 4.3 percent. The indexes for fuels and lubricants retailing, loan services (partial), machinery and equipment parts and supplies wholesaling, and truck transportation of freight also decreased. Conversely, margins for machinery and vehicle wholesaling advanced 3.0 percent. The indexes for hospital outpatient care; health, beauty, and optical goods retailing; and transportation of passengers (partial) also rose.
Posted: August 9, 2019 Friday 08:30 AM