In July, the increase in the index for finished goods can be traced to higher prices for finished goods other than foods and energy, which rose 0.3 percent. Also contributing to the advance in finished goods prices, the index for consumer foods moved up 0.7 percent. By contrast, the finished energy goods index fell 0.9 percent in July.
Finished core: The index for finished goods other than foods and energy moved up 0.3 percent in July, its largest increase since a similar 0.3-percent rise in January. Almost half of the July advance can be attributed to a 1.5-percent rise in prices for light motor trucks. Increases in the indexes for pharmaceutical preparations and passenger cars also were factors in the finished core advance.
Finished foods: The index for finished consumer foods climbed 0.7 percent in July, following three consecutive declines. About sixty percent of this advance can be traced to a 9.8-percent increase in prices for fresh and dry vegetables. Higher prices for eggs for fresh use also contributed to the rise in the index for finished consumer foods.
Finished energy: The index for finished energy goods moved down 0.9 percent in July, its fourth consecutive decrease. Almost ninety percent of the July decline was due to gasoline prices, which fell 2.2 percent.
Intermediate goods
The Producer Price Index for Intermediate Materials, Supplies, and Components moved down 0.4 percent in July, its second straight decrease. Prices for both intermediate materials other than foods and energy and for intermediate foods and feeds fell 0.4 percent in July. The index for intermediate energy goods decreased 0.7 percent. On a 12-month basis, prices for intermediate goods climbed 6.4 percent for the second consecutive month.
Intermediate core: The index for intermediate goods less foods and energy fell 0.4 percent in July, its second consecutive decline. Leadingthe July decrease, prices for basic organic chemicals dropped 4.3 percent. Lower prices for steel mill products and nitrogenates also were factors in the intermediate core decline.
Intermediate energy: The index for intermediate energy goods fell 0.7 percent in July following a 2.6-percent drop in June. Jet fuel prices, which moved down 3.6 percent, were a significant factor in the July decline for intermediate energy goods. Lower gasoline prices also contributed to this decrease.
Intermediate foods: The index for intermediate foods and feeds fell 0.4 percent in July, its first decrease since March. The July decline was led by beef and veal prices, which moved down 6.4 percent.
Crude goods
The Producer Price Index for Crude Materials for Further Processing moved up 2.7 percent in July. For the 3 months ending in July, crude materials prices fell 2.6 percent after declining 1.4 percent from January to April. In July, almost two-thirds of the monthly increase was due to the index for crude energy materials, which moved up 4.5 percent. Also contributing to the July increase, prices for crude foodstuffs and feedstuffs rose 3.3 percent. By contrast, the index for crude nonfood materials less energy moved down 1.4 percent in July.
Crude energy: The index for crude energy materials advanced 4.5 percent in July. From April to July, prices for crude energy materials moved up 0.8 percent subsequent to a 10.9-percent drop for the 3 months ending in April. The monthly increase in July was almost entirely the result of an 11.7-percent jump in the index for natural gas. Prices for coal also contributed to the crude energy goods increase, rising 1.2 percent.
Crude foods: The index for crude foodstuffs and feedstuffs rose 3.3 percent in July. For the 3-month period ending in July, crude food prices moved down 2.8 percent. This decline followed a 3.5-percent increase from January to April. About a third of the July monthly advance can be attributed to prices for corn, which jumped 14.6 percent. An increase in the index for slaughter cattle also contributed to the rise in crude food prices.
Crude core: The index for crude nonfood materials less energy decreased 1.4 percent in July. From April to July, crude core prices fell 7.6 percent following a 9.7-percent advance in the previous 3-month period. Leading the July monthly decline was a 6.7-percent drop in the index for iron and steel scrap. A decrease in the index for wastepaper also contributed to lower crude core prices.
Services Analysis
Trade industries: The Producer Price Index for the Net Output of Total Trade Industries advanced 0.4 percent in July following a 2.3-percent decline in the previous month. (Trade indexes measure changes in margins received by wholesalers and retailers.) Leading this increase, margins received by discount department stores rose 19.4 percent. Higher margins received by family clothing stores and gasoline stations also contributed to the advance in the total trade industries index.
Transportation and warehousing industries: The Producer Price Index for the Net Output of Transportation and Warehousing Industries moved up 0.5 percent in July, its seventh consecutive increase. Over eighty percent of the July rise can be attributed to a 2.5-percent advance in prices received by the industry for scheduled passenger air transportation. Higher prices received by the industries for water transportation and nonscheduled air freight chartering also were factors in the increase in the transportation and warehousing industries index.
Traditional service industries: The Producer Price Index for the Net Output of Total Traditional Service Industries rose 0.3 percent in July, its second straight advance. About half of the July increase can be traced to higher prices received by the commercial banking industry, which moved up 1.8 percent. An increase in prices received by the passenger car rental industry and by non-casino hotels and motels also contributed to the rise in the total traditional service industries index.
