Research >> Economics
Producer Price Index fell 0.2% in June, ex Fd & Engy up 0.1%
The Producer Price Index for final demand fell 0.2 percent in June, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This decrease followed a 0.4-percent increase in May and a 1.3-percent decline in April. (See table A.) On an unadjusted basis, the final demand index moved down 0.8 percent for the 12 months ended in June.
In June, the decrease in the final demand index is attributable to a 0.3-percent decline in prices for final demand services. In contrast, the index for final demand goods rose 0.2 percent.
Prices for final demand less foods, energy, and trade services advanced 0.3 percent in June, the largest increase since a 0.3-percent rise in January. For the 12 months ended in June, prices for final demand less foods, energy, and trade services edged down 0.1 percent.
Final demand services: The index for final demand services moved down 0.3 percent in June, the largest decrease since falling 0.3 percent in February. The June decline can be attributed to margins for final demand trade services, which dropped 1.8 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Conversely, the indexes for final demand services less trade, transportation, and warehousing and for final demand transportation and warehousing services increased 0.3 percent and 0.9 percent, respectively.
Product detail: Eighty percent of the June decline in the index for final demand services can be traced to a 7.3-percent drop in margins for machinery and vehicle wholesaling. The indexes for apparel, jewelry, footwear, and accessories retailing; fuels and lubricants retailing; dental care; deposit services (partial); and long-distance motor carrying also fell. In contrast, prices for hospital inpatient care rose 0.8 percent. The indexes for transportation of passengers (partial) and automobile retailing (partial) also increased.
Final demand goods: The index for final demand goods rose 0.2 percent in June after increasing 1.6 percent in May. Leading the June advance, prices for final demand energy jumped 7.7 percent. The index for final demand goods less foods and energy inched up 0.1 percent. Conversely, prices for final demand foods dropped 5.2 percent.
Product detail: In June, a major factor in the increase in prices for final demand goods was the gasoline index, which rose 26.3 percent. Prices for diesel fuel; jet fuel; natural, processed, and imitation cheese; basic organic chemicals; and fresh and dry vegetables also advanced. In contrast, prices for meats dropped 27.7 percent. The indexes for residential electric power and light motor trucks also declined.
Posted: July 10, 2020 Friday 08:30 AM