News

The Producer Price Index for final demand (also known as wholesale prices) rose a seasonally adjusted 0.2% in August, following a flat reading in July. Over the past year, the final demand index climbed 1.7% on an unadjusted basis, a substantial decline from the 2.1% over-the-year increase in July. Prices for final demand excluding foods, energy and trade services rose 0.3%, the same reading as July.

Prices for final demand goods were unchanged in August, following a significant 0.6% increase in July. While both food (0.1%) and other goods (0.2%) prices saw a slight uptick, a 0.9% drop in energy prices balanced out those increases.

In August, the index for final demand services rose 0.4% after a 0.3% drop in July. This increase was largely due to a 0.6% rise in trade services prices, although prices for services excluding trade, transportation and warehousing increased 0.3%. The rise in trade services prices in August follows a significant price decline of 1.7% in July. Meanwhile, transportation and warehousing services prices dipped a slight 0.1%.

Prices within intermediate demand fell in August after experiencing broad increases in July. Processed goods for intermediate demand dropped 0.1%, with prices for processed energy goods leading the decrease. A major decrease in the price of the index for jet fuel (10.5%) was a leading factor in this decline. Additional contributions to the decline came from lower prices for foods and feeds. On the other hand, prices for processed materials less foods and energy inched up 0.1%.

Meanwhile, unprocessed goods for intermediate demand moved down 3.7% in August, the largest decline since December 2023, after surging 2.1% in July. Three-quarters of the decline was driven by a 7.5% drop in unprocessed energy materials. Foodstuffs and feedstuffs and nonfood materials less energy prices also moved down. Over the 12 months ending in August, prices for processed goods for intermediate demand fell 4.3%.