The Producer Price Index (PPI) for final demand was softer than expected in July, increasing by 0.1%, following a 0.2% rise in June. Over the past 12 months, the index advanced by 2.2%. The July increase was driven by a 0.6% rise in final demand goods, particularly energy prices, which grew by 1.9%. Final demand services fell 0.2%, primarily due to a drop in trade services margins. Excluding volatile categories like food, energy, and trade services, prices increased by 0.3% in July, resulting in a 3.3% year-over-year rise.

Key Points

• July 2024 PPI Increase: 0.1% increase in the PPI for final demand.
• 12-Month PPI Change: PPI for final demand up 2.2% year-over-year.
• Final Demand Goods: Prices rose by 0.6%, driven by a 1.9% increase in energy.
• Final Demand Services: Prices decreased by 0.2%, with trade services margins falling 1.3%.
• Energy Impact: 60% of the increase in goods prices was attributed to higher energy costs.
• Notable Price Increases: Gasoline up 2.8%, with rises in diesel fuel, meats, and jet fuel.
• Exclusions Effect: Excluding food, energy, and trade services, prices rose by 0.3%, up 3.3% year-over-year.

Source:  BLS