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Producer Price Index declined -0.1% in August, ex Fd & Engy up 0.1%
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The Producer Price Index for final demand declined 0.1 percent in August, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices were unchanged in July and increased 0.3 percent in June. On an unadjusted basis, the final demand index rose 2.8 percent for the 12 months ended in August.
In August, the decline in the final demand index can be attributed to a 0.1-percent decrease in prices for final demand services. The index for final demand goods was unchanged.
The index for final demand less foods, energy, and trade services edged up 0.1 percent in August after advancing 0.3 percent in both July and June. For the 12 months ended in August, prices for final demand less foods, energy, and trade services rose 2.9 percent.
Final demand
Final demand services: The index for final demand services inched down 0.1 percent in August, the same as in July. The August decrease was led by a 0.9-percent decline in the index for final demand trade services. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand transportation and warehousing services fell 0.6 percent. In contrast, the index for final demand services less trade, transportation, and warehousing rose 0.3 percent.
Product detail: In August, over 80 percent of the decrease in prices for final demand services can be traced to margins for machinery and equipment wholesaling, which fell 1.7 percent. The indexes for health, beauty, and optical goods retailing; application software publishing; airline passenger services; and hospital outpatient care also moved lower. Conversely, prices for loan services (partial) jumped 3.0 percent. The indexes for food retailing, bundled wired telecommunication access services, and physician care also rose.
Final demand goods: The index for final demand goods was unchanged in August after increasing in each of the prior three months. In August, a 0.4-percent advance in prices for final demand energy offset a 0.6-percent decline in the index for final demand foods. Prices for final demand goods less foods and energy were unchanged.
Product detail: In August, the index for residential electric power moved up 0.6 percent. Prices for fresh and dry vegetables, corn, gasoline, and passenger cars also increased. In contrast, the index for fresh fruits and melons dropped 11.3 percent. Prices for diesel fuel, meats, eggs for fresh use, and iron and steel scrap also declined.
Posted: September 12, 2018 Wednesday 08:30 AM