The Producer Price Index for final demand increased 0.2 percent in August, according to the U.S. Bureau of Labor Statistics. Final demand prices were down 0.1 percent in July and were up 0.1 percent in June. On an unadjusted basis, the final demand index increased 2.4 percent for the 12 months ended in August.
Three-quarters of the August increase in final demand prices is attributable to the index for final demand goods, which increased 0.5 percent. Prices for final demand services rose 0.1 percent.
The index for final demand less foods, energy, and trade services increased 0.2 percent in August following no change in July. For the 12 months ended in August, prices for final demand less foods, energy, and trade services rose 1.9 percent.
Prices for final demand goods increased 0.5 percent in August, the largest rise since moving up 0.5 percent in April. Most of the August increase can be traced to the index for final demand energy, which climbed 3.3 percent. Prices for final demand goods less foods and energy moved up 0.2 percent. In contrast, the index for final demand foods fell 1.3 percent.
Three-quarters of the August increase in the final demand goods index can be traced to prices for gasoline, which jumped 9.5 percent. The indexes for jet fuel, industrial chemicals, potatoes, home heating oil and light motor trucks also moved higher. Conversely, prices for meats fell 3.4 percent. The indexes for fresh vegetables (except potatoes) and for plastic resins and materials also declined.
The index for final demand services increased 0.1 percent in August after falling 0.2 percent in July. Over 70 percent of the increase can be traced to a 0.1-percent advance in the index for final demand services less trade, transportation, and warehousing. Additionally, prices for final demand transportation and warehousing services climbed 0.3 percent. Margins for final demand trade services were unchanged.
Over half of the August increase in the index for final demand services can be attributed to prices for consumer loans, which advanced 1.7 percent. The indexes for outpatient care, machinery and equipment wholesaling, truck transportation of freight, and food retailing also moved higher. In contrast, margins for fuels and lubricants retailing fell 6.8 percent. The indexes for chemicals and allied products wholesaling, guestroom rental and airline passenger services also declined.
