Producer prices grew by the fastest rate in five months in June, mainly driven by final demand trade services.
- The Producer Price Index for final demand grew 1.0% in June, faster than the 0.3% in June 2020 and 0.8% in May. The latest reading is the fastest since January’s 1.2%.
- Nearly 60% of the growth in June is due to the 0.8% climb in services for the month, which rose for the sixth straight month. Increases were traced to vehicles, and hardware and building materials while declines were seen in apparel wholesale and machinery and equipment parts.
- Goods increased 1.2% for the month, as prices for industrial chemicals, gasoline, meats, electric power, processed poultry, and motor vehicles inched higher. Lower prices were recorded in oilseeds, diesel fuel, and distilled and bottled liquor.
- Processed goods for intermediate demand increased by 1.9%, mainly on higher steel mill products, fabricated structural metal, and plastic resins. Unprocessed goods gained 2.6% due to the jump in crude petroleum products, along with slaughter cattle and natural gas.
Prices for final demand without foods, energy, and trade services grew 0.5%, faster than June 2020’s 0.3%, but slower than May’s 0.7%.
Source: Bureau of Labor Statistics