PRODUCER PRICE INDEXES - JULY 2024 The Producer Price Index for final demand increased 0.1 percent in July, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices rose 0.2 percent in June and were unchanged in May. (See table A.) On an unadjusted basis, the index for final demand advanced 2.2 percent for the 12 months ended in July. The July rise in the index for final demand can be attributed to prices for final demand goods, which moved up 0.6 percent. In contrast, the index for final demand services fell 0.2 percent. Prices for final demand less foods, energy, and trade services advanced 0.3 percent in July after increasing 0.1 percent in June. For the 12 months ended in July, the index for final demand less foods, energy, and trade services moved up 3.3 percent. Final Demand Final demand goods: Prices for final demand goods rose 0.6 percent in July, the largest advance since a 1.1-percent jump in February. Nearly 60 percent of the broad-based increase in July can be traced to the index for final demand energy, which moved up 1.9 percent. Prices for final demand goods less foods and energy and for final demand foods also rose, 0.2 percent and 0.6 percent, respectively. Product detail: A quarter of the July rise in the index for final demand goods is attributable to a 2.8- percent advance in prices for gasoline. The indexes for diesel fuel, meats, jet fuel, fresh fruits and melons, and basic organic chemicals also increased. Conversely, prices for electric power decreased 1.1 percent. The indexes for fresh and dry vegetables and for steel mill products also moved down. (See table 2.) Final demand services: Prices for final demand services fell 0.2 percent in July, the largest decrease since moving down 0.2 percent in March 2023. The July decline can be traced to the index for final demand trade services, which dropped 1.3 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) In contrast, prices for final demand services less trade, transportation, and warehousing and for final demand transportation and warehousing services rose 0.3 percent and 0.4 percent, respectively. Product detail: Leading the July decline in prices for final demand services, margins for machinery and vehicle wholesaling decreased 4.1 percent. The indexes for food and alcohol retailing, automobiles retailing (partial), automotive fuels and lubricants retailing, desktop and portable device application software publishing, and physician care also fell. Conversely, prices for portfolio management advanced 2.3 percent. The indexes for chemicals and allied products wholesaling and for truck transportation of freight also rose.
