U.S. Producer Price Index Rose in July

Washington, DC, August 14, 2015—The Producer Price Index for final demand advanced 0.2% in July, the U.S. Bureau of Labor Statistics has reported. Final demand prices rose 0.4% in June and 0.5% in May.

On an unadjusted basis, the final demand index moved down 0.8% for the 12 months ended in July, the sixth straight 12-month decline.

In July, the increase in the final demand index can be traced to prices for final demand services, which climbed 0.4%. In contrast, the index for final demand goods edged down 0.1%.

Within intermediate demand, prices for processed goods moved down 0.2%, the index for unprocessed goods fell 2.9%, and prices for services advanced 0.2%.

The index for final demand services moved up 0.4% in July, the largest rise since a 0.6% increase in October 2014. In July, 60% of the broad-based advance can be traced to a 0.4% rise in the index for final demand services less trade, transportation, and warehousing. Margins for final demand trade services also climbed 0.4%, and the index for final demand transportation and warehousing services moved up 0.2%.