News

The Producer Price Index for final demand (also known as wholesale prices) surged 0.9% over the month in July, the largest monthly jump since March 2022, after prices stayed the same in June. Over the year, producer prices moved up 3.3% in July, up from the 2.4% hike in June. Meanwhile, prices for final demand excluding foods, energy and trade services increased 0.6% over the month in July, after staying the same in June. Prices for these goods advanced 2.8% from July 2024.

Within final demand, prices for services advanced 1.1% in July, accounting for more than three-quarters of the headline increase. Meanwhile, prices for goods rose 0.7%. Over half of the increase in prices for services is attributed to a 2.0% rise in margins for trade services, indicating companies are absorbing a smaller percentage of those higher costs. Meanwhile, 40% of the increase in goods arose from the 1.4% gain in foods. Within the final demand goods index, prices for industrial material handling equipment climbed 0.6% over the month and 6.0% from July 2024. In addition, prices for private capital equipment for manufacturing industries jumped 4.4% over the year, the largest yearly increase since September 2023.

Processed goods for intermediate demand rose 0.8% in July, the largest rate of increase since January. Over half of the rise can be attributed to an 11.8% gain in the diesel fuel index. Meanwhile, the index for processed foods and feeds fell 0.1%. Over the year, the index grew 2.1%, the largest 12-month increase since the 2.1% rise in February 2023.

Meanwhile, prices for unprocessed goods for intermediate demand advanced 1.8% in July, after rising 2.6% in June. Nearly two-thirds of the July gain can be traced to a 2.9% hike in the prices for unprocessed foodstuffs and feedstuffs. Additionally, prices for unprocessed nonfood materials less energy rose 2.0