Producer Price Index (PPI) for Final Demand Matches Forecast for 0.2% Gain

Producer Price Index (PPI) Graphic

The U.S. Bureau of Labor Statistics (BLS) reported the Producer Price Index (PPI) for final demand increased by a seasonally adjusted 0.2% in September, matching the consensus forecast. Final demand prices declined 0.1% in August and were unchanged in July. On an unadjusted basis, the final demand index advanced 2.6% for the 12 months ended in September.

In September, the rise in the final demand index can be traced to a 0.3% increase in prices for final demand services. In contrast, the index for final demand goods decreased 0.1%. The index for final demand less foods, energy, and trade services moved up 0.4% in September, the largest rise since a 0.5% increase in January. For the 12 months ended in September, prices for
final demand less foods, energy, and trade services advanced 2.9%.

The index for final demand services increased 0.3% in September following two consecutive declines of 0.1%. The broad-based advance was led by a 1.8% gain in the index for final demand transportation and warehousing services. Prices for final demand services less trade, transportation, and warehousing rose 0.3%, and the index for final demand trade services inched up 0.1%.

The index for final demand goods edged down 0.1 percent in September, the first decrease since a 0.5% decline in May 2017. Leading the September decline, prices for final demand energy fell 0.8%. The index for final demand foods decreased 0.6%. In contrast, prices for final demand goods less foods and energy rose 0.2%.