BLS: US PPI Falls 0.1% in August on Lower Services Prices

VIENNA (DTN) – The Producer Price Index for final demand retreated 0.1% in August, seasonally adjusted, following a 0.7% increase in July, the U.S. Bureau of Labor Statistics reported Wednesday. On an unadjusted basis, the index for final demand rose 2.6% year-on-year.  

The August decrease was led by a 0.2% drop in prices for final demand services. The index for final demand goods prices, in contrast, increased by 0.1%. 

Market consensus expected a 0.3% increase in August, but a 1.7% month-on-month drop in trade costs and a 0.4% decline in energy costs more than outweighed the 0.3% increase in core producer prices.

Excluding food, energy, and trade services, the index for final demand rose 0.3% in August after rising 0.6% in July. Over the past 12 months, this core measure has increased 2.8%. 

BLS also revised lower the final demand PPI for July from 0.9% to 0.7% month-on-month.