The Producer Price Index for final demand moved up 0.4% in August, seasonally adjusted, the U.S. Bureau of Labor Statistics reported. Final demand prices rose 0.1% in July and decreased 0.1% in June. On an unadjusted basis, the index for final demand increased 5.4% for the 12 months ended in August.
In August, the index for final demand goods advanced 1.1%, and prices for final demand services increased 0.1%. The index for final demand less foods, energy, and trade services rose 0.3% in August after moving up 0.4% in July. For the 12 months ended in August, prices for final demand less foods, energy, and trade services advanced 4.7%.
Final demand goods: The index for final demand goods advanced 1.1% in August following two consecutive decreases. Over three-fourths of the broad-based rise can be attributed to prices for final demand energy, which moved up 4.2%. The indexes for final demand goods less foods and energy and for final demand foods increased 0.4% and 0.1%, respectively.\
Over a third of the August increase in the index for final demand goods can be traced to prices for diesel fuel, which jumped 24.1%. The indexes for gasoline, jet fuel, home heating oil, candy and nuts, and tobacco products also advanced. In contrast, prices for residential electric power fell 0.5%.
