Producer Price Index for Final Demand Increases 0.7% in August

The Bureau of Labor Statistics (BLS) reported today (9-10-21) that the Producer Price Index (PPI) for final demand, seasonally adjusted, increased 0.7% in August. Final demand prices rose 1.0% in July (the same as in June), 0.8% in May, 0.6% in April, 1.0% in March, and 0.5% in February. On an unadjusted basis, the final demand index moved up 8.3% for the 12 months ended in August. The largest advance since 12-month data were first calculated in November 2010.

Leading the August increase in the index for final demand, prices for final demand services rose 0.7%. The index for final demand goods moved up 1.0%. Prices for final demand less foods, energy, and trade services moved up 0.3% in August after increasing 0.9% in July. For the 12 months ended in August, the index for final demand less foods, energy, and trade services rose 6.3% — the largest advance since 12-month data were first calculated in August 2014.