Food and Energy Put Pressure on PPI
The Bureau of Labor Statistics released the Producer Price Index (PPI) for the month of August. Most readings came out flat with the previous month's numbers.
The PPI for final demand remained flat in August on a seasonally adjusted basis. This matched up perfectly against a Bloomberg estimate of 0.0%. Excluding food and energy, the reading was 0.1%, compared to an estimate of 0.1%.
Final demand prices advanced 0.1% in July and 0.4% in June. On an unadjusted basis, the index for final demand increased 1.8% for the 12 months ended in August. In August, a 0.3% rise in prices for final demand services offset a 0.3% decrease in the index for final demand goods.
The index for final demand goods moved down 0.3% in August, the largest decrease since a 0.7% drop in April 2013. More than 80% of the August decline is attributable to prices for final demand energy, which fell 1.5%. The index for final demand foods decreased 0.5%. Prices for final demand goods less foods and energy were unchanged.
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Filed under: Economy