Producer Prices Climb 7.8% in July to Hit Record High

Source: Bureau of Labor Statistics

Producer prices growth posted a record-high in July, driven mainly by the increase in prices for final demand services during the period.

• The Producer Price Index for final demand grew 7.8% in July, the highest on record since data calculation started in November 2010.
• The latest reading compares with 7.3% in June and -0.3% in July 2020.
• Nearly 75% of the increase in July was attributed to the 1.1% climb in prices for final demand services.
• Prices for final demand excluding food, energy, and trade services climbed by 0.9%. This is the biggest monthly climb since 1.0% in January.
• On an annual basis, the index rose 6.1% to mark the biggest increase since the 12-month data started in August 2014.
• Increases were recorded in prices of tobacco; gasoline, diesel, and gas; consumer, institutional, and commercial plastic; and eggs for fresh use.
• Declines were seen in prices of beef and veal; residential electric power; and softwood lumber.