Wednesday, July 16, 2025

Producer Price Index Unchanged; Goods Up; Services Down

From the Bureau of Labor Statistics, July 16:

PRODUCER PRICE INDEXES - JUNE 2025

The Producer Price Index for final demand was unchanged in June, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices increased 0.3 percent in May and declined 0.3 percent in April. (See table A.) On an unadjusted basis, the index for final demand rose 2.3 percent for the 12 months ended in June.

In June, a 0.3-percent advance in prices for final demand goods offset a 0.1-percent decrease in the index for final demand services.

Prices for final demand less foods, energy, and trade services were unchanged in June after inching up 0.1 percent in May. For the 12 months ended in June, the index for final demand less foods, energy, and trade services advanced 2.5 percent.

Final Demand
Final demand goods: Prices for final demand goods rose 0.3 percent in June, the largest increase since moving up 0.3 percent in February. Over half of the broad-based advance in June can be traced to the index for final demand goods less foods and energy, which climbed 0.3 percent. Prices for final demand energy and for final demand foods also rose, 0.6 percent and 0.2 percent, respectively.

Product detail: Within the index for final demand goods in June, prices for communication and related equipment increased 0.8 percent. The indexes for gasoline; residential electric power; canned, cooked, smoked, or prepared poultry; meats; and tree nuts also moved higher. In contrast, prices for chicken eggs dropped 21.8 percent. The indexes for natural gas liquids and for thermoplastic resins and plastics materials also declined. (See table 2.)

Final demand services: Prices for final demand services edged down 0.1 percent in June after increasing 0.4 percent in May. Leading the decrease, the index for final demand services less trade, transportation, and warehousing declined 0.1 percent. Prices for final demand transportation and warehousing services fell 0.9 percent, while margins for final demand trade services were unchanged. 
(Trade indexes measure changes in margins received by wholesalers and retailers.)

Product detail: Over half of the June decline in the index for final demand services can be attributed to prices for traveler accommodation services, which fell 4.1 percent. The indexes for automobiles and automobile parts retailing, deposit services (partial), airline passenger services, and food and alcohol wholesaling also decreased. Conversely, prices for portfolio management advanced 2.2 
percent. The indexes for machinery, equipment, parts, and supplies wholesaling; furniture retailing; and apparel, jewelry, footwear, and accessories retailing also rose....

....MUCH MORE, including table and intermediate demand (tracking prices in the pipeline)