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Producer Price Index was unchanged% in July, ex Fd & Engy up 0.3%
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The Producer Price Index for final demand was unchanged in July, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices advanced 0.3 percent in June and 0.5 percent in May. On an unadjusted basis, the final demand index increased 3.3 percent for the 12 months ended in July.
In July, a 0.1-percent rise in the index for final demand goods offset a 0.1-percent decline in prices for final demand services.
The index for final demand less foods, energy, and trade services moved up 0.3 percent in July, the same as in June. For the 12 months ended in July, prices for final demand less foods, energy, and trade services climbed 2.8 percent.
Final Demand
Final demand goods: The index for final demand goods inched up 0.1 percent in July, the same as in June. The July advance in prices for final demand goods can be traced to a 0.3-percent rise in the index for final demand goods less foods and energy. In contrast, prices for final demand energy fell 0.5 percent, and the index for final demand foods decreased 0.1 percent.
Product detail: In July, a major factor in the increase in prices for final demand goods was the index for pharmaceutical preparations, which rose 0.7 percent. Prices for eggs for fresh use, fresh fruits and melons, motor vehicles, and liquefied petroleum gas also moved higher. Conversely, the electric power index fell 1.6 percent. Prices for meats; hay, hayseeds, and oilseeds; and nonferrous scrap also decreased.
Final demand services: Prices for final demand services edged down 0.1 percent in July, the first decline since falling 0.2 percent in December 2017. The July decrease is attributable to the index for final demand trade services, which moved down 0.8 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) In contrast, prices for final demand services less trade, transportation, and warehousing and the index for final demand transportation and warehousing services advanced 0.3 percent.
Product detail: Leading the July decline in prices for final demand services, margins for fuels and lubricants retailing dropped 12.7 percent. The indexes for machinery and equipment parts and supplies wholesaling, food retailing, hospital outpatient care, and airline passenger services also moved lower. Conversely, prices for guestroom rental climbed 3.9 percent. The indexes for apparel, jewelry, footwear, and accessories retailing; inpatient care; and truck transportation of freight also increased.
Posted: August 9, 2018 Thursday 08:30 AM