The 2020 Mid-Year Economic Update_long

Producer Price Index Up 0.1% in June

Prices for final demand services unchanged in May.

The Producer Price Index for final demand was up 0.1 percent in June, seasonally adjusted, according to the U.S. Bureau of Labor Statistics. Final demand prices were unchanged in May and rose 0.5 percent in April. On an unadjusted basis, the final demand index increased 2 percent for the 12 months ended in June.

In June, almost 80 percent of the rise in the final demand index is attributable to prices for final demand services, which increased 0.2 percent. The index for final demand goods edged up 0.1 percent.

Prices for final demand less foods, energy, and trade services increased 0.2 percent in June. For the 12 months ended in June, the index for final demand less foods, energy, and trade services advanced 2 percent.

Prices for final demand services rose 0.2 percent in June. Most of the June rise can be attributed to a 0.3-percent advance in the index for final demand services less trade, transportation, and warehousing. Prices for final demand transportation and warehousing services edged up 0.1 percent. In contrast, the index for final demand trade services moved down 0.2 percent. 

A major factor in the June increase in the index for final demand services was prices for securities brokerage, dealing, investment advice, and related services, which rose 4.0 percent. The indexes for machinery and equipment wholesaling, loan services (partial), insurance, inpatient care, and truck transportation of freight also advanced. Conversely, margins for apparel, footwear, and accessories retailing declined 3.7 percent. The indexes for motor vehicle maintenance and repair (partial) and for airline passenger services also fell.

Prices for final demand goods edged up 0.1 percent in June, after falling 0.5 percent in the previous month. Most of the June advance can be attributed to the index for final demand foods, which climbed 0.6 percent. Prices for final demand goods less foods and energy inched up 0.1 percent. In contrast, the index for final demand energy declined 0.5 percent.

Leading the June advance in the index for final demand goods, prices for meats increased 5.5 percent. The indexes for pharmaceutical preparations, light motor trucks, young chickens, potatoes, and butter also moved higher. Conversely, prices for gasoline moved down 1.1 percent. The indexes for fresh vegetables (except potatoes), plastic resins and materials, and unprocessed finfish also fell.

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