U.S. Producer Price Index (PPI) for final demand increased 0.7% in August, seasonally adjusted, after rising 0.4% in July, the U.S. Bureau of Labor Statistics reported.
The August advance is the largest increase in final demand prices since moving up 0.9% in June 2022. On an unadjusted basis, the index for final demand rose 1.6% for the 12 months ended in August.
In August, 80% of the rise in final demand prices is attributable to a 2.0-%t jump in the index for final demand goods. Prices for final demand services advanced 0.2%.
The index for final demand less foods, energy, and trade services increased 0.3% in August, the same as in July. For the 12 months ended in August, prices for final demand less foods, energy, and trade services rose 3.0%, the largest advance since moving up 3.4% for the 12 months ended in April.
Product detail: Over 60% of the August rise in the index for final demand goods can be traced to prices for gasoline, which jumped 20.0%. The indexes for diesel fuel, jet fuel, home heating oil, beverages and beverage materials, and iron and steel scrap also moved higher. Conversely, prices for fresh and dry vegetables fell 11.5%. The indexes for residential electric power and for industrial chemicals also decreased.
