Finished goods
In August, over ninety percent of the finished goods increase was the result of higher energy prices, which moved up 8.0 percent. The indexes for finished goods less foods and energy and for finished consumer foods also contributed to the advance in finished goods prices, rising 0.2 percent and 0.4 percent, respectively.
Finished energy: The index for finished energy goods climbed 8.0 percent in August, the largest monthly increase since a 10.2-percent rise in November 2007. About eighty-five percent of the August advance can be attributed to higher gasoline prices, which surged 23.0 percent. Rising prices for home heating oil and liquefied petroleum gas also contributed to the increase in the finished energy goods index.
Finished core: Prices for finished goods less foods and energy rose 0.2 percent in August after edging down 0.1 percent a month earlier. Accounting for over half of this increase, the light motor trucks index moved up 0.8 percent. Higher prices for passenger cars also were a major factor in the advance in the finished core index.
Finished foods: Prices for finished consumer foods moved up 0.4 percent in August following a 1.5-percent decline in July. Almost half of this increase can be attributed to higher prices for fresh fruits and melons, which rose 5.9 percent.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and Components advanced 1.8 percent after falling 0.2 percent in July. Accounting for about eighty percent of the August increase, prices for intermediate energy goods rose 7.1 percent. Prices for intermediate materials less foods and energy gained 0.6 percent and the index for intermediate foods and feeds moved up 0.3 percent. For the 12 months ending in August, the decline in intermediate goods prices slowed to 12.3 percent from a record decrease of 15.1 percent from July 2008 to July 2009.
Intermediate energy: The index for intermediate energy goods increased 7.1 percent after decreasing 1.4 percent in July. A major contributor to the August increase was diesel fuel prices, which rose 15.9 percent. Higher prices for gasoline and lubricating oil base stocks also had a significant impact on the intermediate energy goods index.
Intermediate core: Prices for intermediate materials less foods and energy climbed 0.6 percent, the third consecutive monthly increase. Accounting for over half of the gain in August, the steel mill products index increased 6.8 percent. Rising prices for primary basic organic chemicals also had a considerable effect on the intermediate core index.
Intermediate foods: The index for intermediate foods and feeds advanced 0.3 percent after declining 2.0 percent in July. A 6.1-percent increase in the index for corn, cottonseed, and soybean cake and meal accounted for nearly all of the increase in intermediate foods and feeds prices.
Crude goods
The Producer Price Index for Crude Materials for Further Processing advanced 3.8 percent in August. For the 3 months ending in August, crude material prices increased 3.7 percent after rising 6.1 percent from February to May. In August, monthly increases of 6.9 percent in the index crude energy materials and 6.0 percent for prices of crude nonfood materials less energy outweighed a 0.8-percent decline in the index for crude foodstuffs and feedstuffs.
Crude energy: The index for crude energy materials increased 6.9 percent in August, and 11.2 percent from May to August. By comparison, for the 3-month period ended in May, prices for crude energy materials rose 9.3 percent. In August, the monthly increase in the crude energy materials index was entirely the result of crude petroleum prices, which jumped 19.6 percent.
Crude core: The index for crude nonfood materials less energy rose 6.0 percent in August. This index moved up 12.0 percent in the most recent 3-month period, as compared with a 4.5-percent advance in the previous 3-month period. Accounting for about forty-five percent of the monthly August increase, iron and steel scrap prices rose 13.5 percent. An increase in the nonferrous scrap index also contributed significantly to the monthly crude core advance.
Services Analysis
Total Trade Industries: The Producer Price Index for the Net Output of Total Trade Industries decreased 0.3 percent in August, the second consecutive monthly decline. (Trade indexes measure changes in margins received by wholesalers and retailers.) The August decline was led by a 16.9-percent drop in the margin index for gasoline stations. Lower margins received by supermarkets and fuel dealers also contributed to the decrease in the total trade industries index.
Transportation and Warehousing Industries: The Producer Price Index for the Net Output of Total Transportation and Warehousing Industries moved up 0.7 percent in August, its third consecutive monthly increase. Over half of the August advance can be traced to a 2.2-percent rise in prices received by the scheduled air transportation industry group. The industry indexes for local general freight trucking and couriers also increased in August.
Traditional Service Industries: The Producer Price Index for the Net Output of Total Traditional Service Industries rose 0.5 percent in August, its first monthly increase since May. About seventy percent of the August increase can be attributed to a 4.1-percent rise in prices
received by the depository credit intermediation industry group. The industry indexes for securities brokerages and for direct health and medical insurance carriers also moved up in August.
