The Producer Price Index for Finished Goods rose 0.1 percent in August, seasonally adjusted, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. This advance followed increases of 0.1 percent in July and 0.5 percent in June. The index for finished goods other than foods and energy decreased 0.4 percent in August after declining 0.3 percent in the prior month. At the earlier stages of processing, prices received by producers of intermediate goods moved up 0.4 percent in August following a 0.5-percent gain in the previous month, while the crude goods index rose 2.2 percent after advancing 3.1 percent in July.
Among finished goods in August, prices for consumer foods climbed 1.4 percent and the index for energy goods moved up 0.3 percent. These increases slightly outweighed falling prices for consumer goods other than foods and energy and for capital equipment, which fell 0.5 percent and 0.3 percent, respectively.
Before seasonal adjustment, the Producer Price Index for Finished Goods rose 0.1 percent in August to 162.1 (1982 = 100). From August 2005 to August 2006, prices for finished goods advanced 3.7 percent. Over the same period, the index for finished energy goods jumped 13.2 percent, prices for finished consumer foods moved up 2.8 percent, and the index for finished goods other than foods and energy increased 0.9 percent. At the earlier stages of processing, prices for intermediate goods climbed 8.8 percent, and the crude goods index rose 5.3 percent for the 12 months ended August 2006.
The index for finished energy goods increased 0.3 percent in August following a 1.3-percent gain in July. Prices for liquefied petroleum gas rose 0.9 percent after climbing 11.5 percent in the prior month. The index for residential electric power also moved up less in August than it had in July. Gasoline prices turned down following advances in the preceding month. Alternatively, the index for residential natural gas increased 1.6 percent in August after rising 0.9 percent a month earlier. Prices for home heating oil and diesel fuel turned up following declines in July.
The index for finished consumer goods other than foods and energy decreased 0.5 percent in August after moving down 0.3 percent in July. Passenger car prices fell 2.6 percent in August following a 0.8-percent decline a month earlier. The indexes for pharmaceutical preparations and light motor trucks also decreased more than they had in July. Prices for alcoholic beverages, tires, and periodical circulation turned down in August after rising in the preceding month. Conversely, the index for men's and boys' apparel advanced 1.2 percent following a 0.6-percent decline in July. Prices for newspaper circulation and household appliances also increased in August after falling in the previous month.
The capital equipment index decreased 0.3 percent in August after moving down 0.2 percent in July. Leading the August decline, prices for light motor trucks dropped 3.4 percent. The indexes for passenger cars, electronic computers, and communication and related equipment also fell in August. By contrast, prices for civilian aircraft, industrial material handling equipment, transformers and power regulators, truck trailers, and heavy motor trucks increased in August.
Intermediate goods The Producer Price Index for Intermediate Materials, Supplies, and Components advanced 0.4 percent in August following a 0.5-percent gain in July. In August, rising prices for energy goods, materials and components for construction, and materials for both durable and nondurable manufacturing outweighed falling prices for foods and feeds. The index for intermediate goods excluding foods and energy moved up 0.4 percent in August following a 0.7- percent increase a month earlier. (See table