Producer Price Index for Final Demand Climbs Higher in August

The Bureau of Labor Statistics (BLS) reported Thursday (9-14-23) that the Producer Price Index (PPI) for final demand, seasonally adjusted, increased 0.7% in August, after increasing 0.4% in July. The August surge is the largest increase in final demand prices since moving up 0.9% in June 2022. On an unadjusted basis, the index for final demand advanced 1.6% for the 12-month period ending in August.

In August, 80% of the rise in final demand can be traced to a 2.0% increase in the index for final demand goods. Prices for final demand services advanced 0.2%.

The index for final demand less foods, energy, and trade services increased 0.3% in August, the same as July. For the 12-month period ending in August, prices for final demand less foods, energy, and trade services rose 3.0%—the largest advance since moving up 3.4% for the 12 months ending in April.