In July, the decrease in the index for final demand is attributable to a 1.8-per cent decline in prices for final demand goods. In contrast, the index for final demand services advanced by 0.1 per cent.
The seasonally-adjusted producer price index for final demand in the United States fell by 0.5 per cent in July, according to the US Bureau of Labour Statistics, which recently said this decline followed advances of 1 per cent in June and 0.8 per cent in May. On an unadjusted basis, final demand prices moved up by 9.8 per cent for the 12 months to July.
Prices for final demand less foods, energy and trade services moved up by 0.2 per cent in July following a 0.3-per cent rise in June. For the 12 months to July, the index for final demand less foods, energy, and trade services increased by 5.8 per cent.
The index for final demand goods fell by 1.8 per cent in July, the largest decline since moving down 2.7 per cent in April 2020. The July decrease can be traced to a 9-per cent drop in prices for final demand energy.
Conversely, the indexes for final demand foods and for final demand goods less foods and energy rose 1 per cent and 0.2 per cent respectively.
Eighty per cent of the July decline in the index for final demand goods is attributable to gasoline prices, which fell by 16.7 per cent.
The indexes for industrial chemicals and for electric power increased as well.
Fibre2Fashion News Desk (DS)