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Producer Price Index rose 0.4% in September, ex Fd & Engy up 0.4%
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The Producer Price Index for final demand advanced 0.4 percent in September, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.3 percent in August and 0.6 percent in July. (See table A). On an unadjusted basis, the final demand index increased 0.4 percent for the 12 months ended in September, the first advance since moving up 0.3 percent for the 12 months ended in March.
In September, nearly two-thirds of the rise in prices for final demand is attributable to a 0.4 percent increase in the index for final demand services. Prices for final demand goods also moved up 0.4 percent.
The index for final demand less foods, energy, and trade services advanced 0.4 percent in September, the largest increase since rising 0.4 percent in April 2019. For the 12 months ended in September, prices for final demand less foods, energy, and trade services moved up 0.7 percent, the largest advance since increasing 1.0 percent for the 12 months ended in March.
Final Demand
Final demand services: The index for final demand services rose 0.4 percent in September, the third consecutive advance. Over 80 percent of the broad-based September increase can be traced to prices for final demand services less trade, transportation, and warehousing, which climbed 0.5 percent. The indexes for final demand trade services and for final demand transportation and warehousing services also moved higher, rising 0.2 percent and 0.4 percent, respectively. (Trade indexes measure changes in margins received by wholesalers and retailers.)
Product detail: A 3.9-percent advance in the index for traveler accommodation services was a major factor in the September rise in prices for final demand services. The indexes for hardware, building materials, and supplies retailing; fuels and lubricants retailing; transportation of passengers (partial); food wholesaling; and hospital inpatient care also moved higher. In contrast, the index for food retailing fell 3.2 percent. Prices for truck transportation of freight and deposit services (partial) also decreased.
Final demand goods: The index for final demand goods increased 0.4 percent in September, the fifth consecutive rise. Nearly two-thirds of the September advance is attributable to prices for final demand goods less foods and energy, which climbed 0.4 percent. The index for final demand foods jumped 1.2 percent. Conversely, prices for final demand energy declined 0.3 percent.
Product detail: A 14.7-percent rise in prices for iron and steel scrap was a major factor in the September advance in the index for final demand goods. Prices for fresh and dry vegetables, residential electric power, corn, beef and veal, and oilseeds also moved higher. In contrast, the gasoline index fell 2.8 percent. Prices for natural, processed, and imitation cheese and for household refrigeration equipment also decreased.
Posted: October 14, 2020 Wednesday 08:30 AM