October 10, 2024
The Producer Price Index (PPI) for final demand in the U.S. was unchanged in September on a seasonally adjusted basis, according to the U.S. Bureau of Labor Statistics. Prior to this, final demand prices had increased by 0.2 percent in August and remained unchanged in July. Over the 12 months ended in September, the index for final demand rose by 1.8 percent on an unadjusted basis.
In September, a 0.2-percent increase in the index for final demand services offset a 0.2-percent decline in prices for final demand goods.
Excluding the volatile categories of foods, energy, and trade services, the index for final demand less foods, energy, and trade services edged up by 0.1 percent in September after a 0.2 percent increase in August. Over the 12 months ended in September, prices for final demand less foods, energy, and trade services increased by 3.2 percent.
Final demand goods
In September, prices for final demand goods decreased by 0.2 percent, following no change in August. This decline was driven by a 2.7 percent drop in prices for final demand energy. In contrast, the indexes for final demand foods and for final demand goods less foods and energy increased by 1.0 percent and 0.2 percent, respectively.
On a product level, the index for gasoline led the decline, falling by 5.6 percent. Prices also dropped for diesel fuel, jet fuel, chicken eggs, home heating oil, and plastic resins and materials. Conversely, the index for processed poultry surged by 8.8 percent, with prices for electric power and motor vehicles also increasing.
Final demand services
In September, prices for final demand services increased by 0.2 percent, following a 0.4 percent rise in August. Leading the September increase, the index for final demand services less trade, transportation, and warehousing advanced by 0.1 percent. Margins for final demand trade services increased by 0.2 percent, while the index for transportation and warehousing services rose by 0.3 percent.
A 3.0 percent increase in the index for deposit services (partial) significantly contributed to the rise in prices for final demand services in September. Other notable increases were seen in machinery and vehicle wholesaling, furniture retailing, desktop and portable device application software publishing, apparel wholesaling, and airline passenger services. In contrast, margins for professional and commercial equipment wholesaling fell by 6.3 percent, with declines also observed in securities brokerage, dealing, investment advice, and consumer loans (partial).
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