Producer Price Growth Slows to Three-Month Low in August

Source: Bureau of Labor Statistics

Final demand prices continued to climb in August, albeit at the slowest pace in three months, mainly driven by increases in services during the month. DBC is up 1.44%, while GSG is up 1.55%.

• The Producer Price Index for final demand grew 0.7% in August, down from 1.0% in July. This is the slowest in three months since the 0.5% recorded in May.
• Final demand services led the growth, with prices up by 0.7% to mark the eighth straight month of increases.
• Final demand transportation and warehousing services jumped 2.8%, while final demand services excluding trade, transportation, and warehousing gained 0.1%.
• In terms of products, over 30% of the increase in services came from the 7.8% growth in health, beauty, and optical goods retailing.
• Final demand goods inched up 1.0%, with half of the growth coming from the foods, which grew 2.9%. The index moved 0.6% higher when foods and energy were excluded, with energy prices up 0.4%.
• Increases were recorded in meats, residential natural gas, industrial chemicals, processed young chicken, motor vehicles, and steel mill products.
• Declines were reported in iron and steel scrap, diesel fuel, natural, processed, and imitation cheese.