Producer prices were unchanged in July, as lower goods prices offset increases in services and construction, according to the latest Producer Price Index (PPI) report released Aug. 13 by the U.S. Bureau of Labor Statistics.
The PPI for final demand was unchanged in July on a seasonally adjusted basis, following a 0.1% decline in June and a 0.5% increase in May. On an unadjusted basis, producer prices were up 4.7% over the previous 12 months.
Goods prices fell 0.7% in July, led by a 3.1% decrease in energy prices. Gasoline prices fell 5.7% during the month, accounting for more than half of the decline in the final demand goods index. Food prices also decreased 0.9%.
Prices for final demand services increased 0.2% in July following a 0.5% gain in June. The increase was led by a 0.6% rise in services excluding trade, transportation and warehousing, including a 6.5% increase in portfolio management prices. Transportation and warehousing services fell 1.8%.
Core producer prices showed a larger increase. Excluding food and energy, goods prices edged up 0.1%, while the index for final demand excluding food, energy and trade services increased 0.4%. On a year-over-year basis, the latter measure advanced 4.7%.
