Once again we are seeing the increases in the services component.
From the Bureau of Labor Statistics, September 12:
The Producer Price Index for final demand increased 0.2 percent in August, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices were unchanged in July and rose 0.2 percent in June. (See table A.) On an unadjusted basis, the index for final demand advanced 1.7 percent for the 12 months ended in August.
The August rise in the index for final demand can be traced to a 0.4-percent increase in prices for final demand services. The index for final demand goods was unchanged.
Prices for final demand less foods, energy, and trade services advanced 0.3 percent in August, the same as in July. For the 12 months ended in August, the index for final demand less foods, energy, and trade services moved up 3.3 percent.
Final Demand
Final demand services: Prices for final demand services rose 0.4 percent in August after declining 0.3 percent in July. Nearly 60 percent of the increase is attributable to a 0.3-percent advance in the index for final demand services less trade, transportation, and warehousing. Margins for final demand trade services moved up 0.6 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) In contrast, the index for final demand transportation and warehousing services decreased 0.1 percent.
Product detail: A 4.8-percent rise in the index for guestroom rental was a major factor in the August advance in prices for final demand services. The indexes for machinery and vehicle wholesaling, automotive fuels and lubricants retailing, residential real estate loans (partial), professional and commercial equipment wholesaling, and furniture retailing also moved higher. Conversely, prices for airline passenger services fell 0.8 percent. The indexes for food and alcohol retailing and for membership dues, admissions, and recreational facility use fees (partial) also decreased. (See table 2.)
Final demand goods: Prices for final demand goods were unchanged in August after rising 0.6 percent in July. In August, the indexes for final demand goods less foods and energy and for final demand foods advanced 0.2 percent and 0.1 percent, respectively. In contrast, prices for final demand energy fell 0.9 percent.
Product detail: In August, the index for non-electronic cigarettes increased 2.3 percent. Prices for chicken eggs, gasoline, diesel fuel, and drugs and pharmaceuticals also moved up. Conversely, the index for jet fuel decreased 10.5 percent. Prices for meats; electric power; hay, hayseeds, and oilseeds; and nonferrous scrap also declined....
....MUCH MORE (tables, narrative)
