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Producer Price Index fell 0.1% in August 2022, ex Fd & Engy up 0.2%
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The Producer Price Index for final demand fell 0.1 percent in August, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices decreased 0.4 percent in July and advanced 1.0 percent in June. On an unadjusted basis, the index for final demand moved up 8.7 percent for the 12 months ended in August.
In August, the decrease in the index for final demand is attributable to a 1.2-percent decline in prices for final demand goods. In contrast, the index for final demand services advanced 0.4 percent.
Prices for final demand less foods, energy, and trade services moved up 0.2 percent in August following a 0.1-percent rise in July. For the 12 months ended in August, the index for final demand less foods, energy, and trade services increased 5.6 percent.
Final Demand
Final demand goods: The index for final demand goods fell 1.2 percent in August after declining 1.7 percent in July. The August decrease can be traced to a 6.0-percent drop in prices for final demand energy. Conversely, the index for final demand goods less foods and energy rose 0.2 percent, while prices for final demand foods were unchanged.
Product detail: In August, over three-quarters of the decrease in prices for final demand goods is attributable to the index for gasoline, which fell 12.7 percent. Prices for diesel fuel, jet fuel, chicken eggs, primary basic organic chemicals, and home heating oil also declined. In contrast, the index for construction machinery and equipment increased 2.6 percent. Prices for beverages and beverage materials and for electric power also rose.
Final demand services: The index for final demand services moved up 0.4 percent in August, the fourth consecutive rise. Sixty percent of the August advance can be traced to a 0.8-percent increase in margins for final demand trade services. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand services less trade, transportation, and warehousing also moved higher, rising 0.3 percent. Conversely, the index for final demand transportation and warehousing services decreased 0.2 percent.
Product detail: Forty percent of the increase in prices for final demand services can be attributed to margins for fuels and lubricants retailing, which rose 14.2 percent. The indexes for securities brokerage, dealing, investment advice, and related services; loan services (partial); transportation of passengers (partial); portfolio management; and chemicals and allied products wholesaling also moved higher. In contrast, prices for truck transportation of freight decreased 1.9 percent. The indexes for guestroom rental and for food and alcohol retailing also fell.
Posted: September 14, 2022 Wednesday 08:30 AM