The Producer Price Index for final demand declined 0.1 percent in July 2017, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. Final demand prices inched up 0.1 percent in June and were unchanged in May. On an unadjusted basis, the final demand index increased 1.9 percent for the 12 months ended in July. Over 80 percent of the July decrease in final demand prices is attributable to the index for final demand services, which fell 0.2 percent. Prices for final demand goods edged down 0.1 percent. The index for final demand less foods, energy, and trade services was unchanged in July following a 0.2-percent advance in June. For the 12 months ended in July, prices for final demand less foods, energy, and trade services rose 1.9 percent.
Final demand goods
Prices for final demand goods edged down 0.1 percent in July 2017 after inching up 0.1 percent in June. In July, the index for final demand energy fell 0.3 percent, and prices for final demand goods less foods and energy declined 0.1 percent. The index for final demand foods was
unchanged.
Product detail
A major factor in the July decrease in prices for final demand goods was the index for gasoline, which moved down 1.4 percent as of July 2017. Prices for beef and veal, utility natural gas, motor vehicles, and basic organic chemicals also fell. In contrast, the index for grains jumped 17.1 percent. Prices for diesel fuel; pork; and consumer, institutional, and commercial plastic products also moved higher