The Producer Price Index (PPI) for final demand in July 2023

The detailed summary of the Producer Price Index (PPI) for final demand in July 2023.

The information you've shared highlights several key points:

1. **Modest Increase in PPI**: The overall PPI increased by 0.3% in July, showing a modest rise. This is a positive change from the previous months, where it remained unchanged in June and declined by 0.3% in May.

2. **Services Lead the Increase**: The rise in the index was mainly driven by a 0.5% increase in final demand services, while final demand goods only edged up by 0.1%.

3. **Portfolio Management Prices Surge**: Within the services sector, prices for portfolio management saw a significant increase of 7.6%, the largest since August 2022.

4. **Meats and Diesel Fuel Notable Movements**: In the goods sector, prices for meats rose by 5.0%, while diesel fuel prices dropped by 7.1%.

5. **Inflationary Pressures Persist**: The data suggests that inflationary pressures in the US economy are still present but may be starting to moderate.

6. **12-Month Trend**: Over the 12 months ended in July, prices for final demand less foods, energy, and trade services advanced by 2.7%.

7. **Sub-Indexes Behavior**: Various sub-indexes showed diverse behavior, with some moving higher and others decreasing. For example, the index for final demand foods rose by 0.5%, while the indexes for final demand goods less foods and energy and for final demand energy remained unchanged.

Overall, the Producer Price Index for final demand in July 2023 showed a modest increase, with prices for final demand services rising more than prices for final demand goods. This suggests that inflationary pressures in the US economy are still present, but that they may be starting to moderate.

Source:https://www.bls.gov/news.release/ppi.nr0.htm