Producer Price Index for Final Demand Increases in July

The U.S. Bureau of Labor Statistics (BLS) is reporting that the Producer Price Index (PPI) for final demand increased to a seasonally adjusted 0.6% in July. The increase follows a -0.2% decline in June and a 0.4% increase in May. The July increase is the largest rise since a 0.7% increase in October 2018. On an unadjusted basis, the final demand index moved down -0.4% for the 12 months ended in July. The July advance in the final demand index was led by a 0.5% rise in prices for final demand services. The index for final demand goods also moved higher, increasing 0.8% in July. Prices for final demand less foods, energy, and trade services advanced 0.3% in July, the same as in June. For the 12 months ended in July, the index for final demand less foods, energy, and trade services edged up 0.1%, following three straight 12-month declines.