August 2024 Producer Price Index

Historical release narrative reproduced from the official public-domain source. Statistical tables, standard technical appendices, administrative material and attendance rosters are omitted; formatting is adapted for reading. Figures retain the release's historical context and may have been revised. Consult the linked source for the complete document.

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.

Intermediate Demand by Commodity Type

Within intermediate demand in August, prices for processed goods fell 0.1 percent, the index for unprocessed goods decreased 3.7 percent, and prices for services declined 0.1 percent. (See tables B and C.)

Processed goods for intermediate demand: The index for processed goods for intermediate demand moved down 0.1 percent in August after rising 0.6 percent in July. Leading the decrease, prices for processed energy goods declined 0.6 percent. The index for processed foods and feeds fell 0.3 percent. In contrast, prices for processed materials less foods and energy inched up 0.1 percent. For the 12 months ended in August, the index for processed goods for intermediate demand fell 1.1 percent, the largest decline since a 1.8-percent decrease for the 12 months ended in March.

Product detail: A major factor in the August decline in prices for processed goods for intermediate demand was the index for jet fuel, which dropped 10.5 percent. Prices for meats, natural gas to electric utilities, cold rolled steel sheet and strip, and lubricating oil base stocks also fell. Conversely, the index for fabricated steel plate jumped 16.8 percent. Prices for diesel fuel, basic organic chemicals, and paperboard also increased.

Unprocessed goods for intermediate demand: The index for unprocessed goods for intermediate demand moved down 3.7 percent in August, the largest decline since falling 4.1 percent in December 2023. More than three-quarters of the broad-based decrease in August is attributable to a 7.5-percent drop in prices for unprocessed energy materials. The indexes for unprocessed foodstuffs and feedstuffs and for unprocessed nonfood materials less energy also moved down, 1.7 percent and 1.1 percent, respectively. For the 12 months ended in August, prices for unprocessed goods for intermediate demand fell 4.3 percent, the largest decline since decreasing 5.0 percent for the 12 months ended in April.

Product detail: Over 40 percent of the August decline in the index for unprocessed goods for intermediate demand can be traced to a 29.8-percent drop in prices for natural gas. The indexes for crude petroleum; hay, hayseeds, and oilseeds; nonferrous scrap; slaughter hogs; and slaughter steers and heifers also fell. In contrast, prices for slaughter chickens rose 5.5 percent. The indexes for carbon steel scrap and for coal also advanced.

Services for intermediate demand: The index for services for intermediate demand edged down 0.1 percent in August, the first decrease since falling 0.1 percent in August 2023. Over 60 percent of the August 2024 decline can be traced to margins for trade services for intermediate demand, which dropped 0.3 percent. Prices for services less trade, transportation, and warehousing for intermediate demand inched down 0.1 percent, while the index for transportation and warehousing services for intermediate demand was unchanged. For the 12 months ended in August, prices for services for intermediate demand advanced 3.4 percent.

Product detail: Within services for intermediate demand in August, margins for machinery and equipment parts and supplies wholesaling declined 0.8 percent. The indexes for gross rents for office buildings, freight forwarding, cable network advertising time sales, and staffing services also moved lower. Conversely, prices for U.S. postal services increased 6.1 percent. The indexes for automotive fuels and lubricants retailing, gross rents for retail properties, and guestroom rental also advanced.

Intermediate Demand by Production Flow

Stage 4 intermediate demand: Prices for stage 4 intermediate demand inched down 0.1 percent in August after rising 0.5 percent in July. In August, the index for total services inputs to stage 4 intermediate demand declined 0.1 percent, while prices for total goods inputs were unchanged. (See table D.) Decreases in the indexes for gross rents for office buildings; meats; machinery and equipment parts and supplies wholesaling; hay, hayseeds, and oilseeds; and staffing services outweighed advances in prices for U.S. postal services; gross rents for retail properties; fabricated steel plate; and securities brokerage, dealing, investment advice, and related services. For the 12 months ended in August, the index for stage 4 intermediate demand increased 1.9 percent.

Stage 3 intermediate demand: The index for stage 3 intermediate demand fell 0.4 percent in August, the largest decline since decreasing 0.5 percent in October 2023. In August, prices for total goods inputs to stage 3 intermediate demand dropped 0.6 percent, and the index for total services inputs moved down 0.3 percent. Declines in prices for jet fuel; cable network advertising time sales; freight forwarding; hay, hayseeds, and oilseeds; slaughter hogs; and gross rents for office buildings outweighed advances in the indexes for slaughter chickens, ungraded chicken eggs, and the U.S. Postal Service. For the 12 months ended in August, prices for stage 3 intermediate demand rose 0.7 percent.

Stage 2 intermediate demand: The index for stage 2 intermediate demand decreased 1.3 percent in August, the largest decline since falling 1.4 percent in May 2023. In August, prices for total goods inputs to stage 2 intermediate demand dropped 3.2 percent. In contrast, the index for total services inputs edged up 0.1 percent. Decreases in prices for gas fuels, crude petroleum, oilseeds, freight forwarding, nonferrous scrap, and staffing services outweighed increases in the indexes for automotive fuels and lubricants retailing, paperboard, and guestroom rental. For the 12 months ended in August, prices for stage 2 intermediate demand advanced 0.2 percent.

Stage 1 intermediate demand: Prices for stage 1 intermediate demand were unchanged in August after rising 0.6 percent in July. In August, the index for total services inputs to stage 1 intermediate demand inched up 0.1 percent, while prices for total goods inputs were unchanged. Increases in the indexes for guestroom rental, the U.S. Postal Service, diesel fuel, fabricated steel plate, and gross rents for retail properties offset falling prices for gross rents for office buildings, nonferrous scrap, natural gas to electric utilities, passenger car rental, and lubricating oil base stocks. For the 12 months ended in August, the index for stage 1 intermediate demand advanced 0.5 percent.