US PPI up by 0.2% in August

The US Producer Price Index (PPI) for final demand rose by 0.2 per cent in August, without change from July and up by a 0.2 per cent from in June. Annually, the index has advanced by 1.7 per cent. The August rise was largely driven by a 0.4 per cent increase in final demand services, while prices of final demand goods remained unchanged.

Prices for final demand goods excluding foods, energy, and trade services increased by 0.3 per cent in August, consistent with July’s rise. The index for this category grew by 3.3 per cent over the past year.

Final demand services saw a 0.4 per cent increase in August, reversing a 0.3 per cent decline in July. Significant contributors included a 4.8 per cent rise in guestroom rental prices and higher costs in various sectors, despite a 0.8 per cent drop in airline passenger services.

Prices of final demand goods were steady in August after a 0.6 per cent rise in July. The index for goods excluding foods and energy and for foods increased by 0.2 per cent and 0.1 per cent, respectively, while energy prices fell by 0.9 per cent.

For intermediate demand, processed goods prices fell by 0.1 per cent, with significant declines in jet fuel and meats. Prices of unprocessed goods dropped by 3.7 per cent, largely due to a 29.8 per cent fall in natural gas prices. Prices for services used in intermediate demand decreased by 0.1 per cent, with notable declines in trade services.

Attribution: PRODUCER PRICE INDEXES – AUGUST 2024

Subediting: M. S. Salama