Producer Prices Unchanged in August

Producer prices were unchanged in August after rising 0.2 percent, seasonally adjusted, in July according to the U.S. Bureau of Labor Statistics. August’s price stagnation in prices was attributable to an increase in prices for final demand services, offset by a decrease in prices for final demand goods.

The index for final demand services increased by 0.4 percent. Nearly half of the increase could be traced to margins for apparel, footwear, and accessories retailing, which grew by 7.0 percent on the month. Indexes for automotive fuels and lubricants, as well as securities brokerage, dealing, investment advice and related services also moved higher.

Final demand goods fell 0.6 percent, largely due to a 3.3 percent decrease in prices for final demand energy. The index for final demand goods less food and energy declined by 0.2 percent, while the prices for final demand foods rose 0.3 percent.

Read the BLS release.


About Author

Tim Nicholson

Tim Nicholson is an economic research associate at ABA.