The Producer Price Index for final demand (also known as wholesale prices) was unchanged in September, after rising 0.2% in August. Over the past year, the final demand index rose 1.8% on an unadjusted basis, a slight decline from the 1.9% over-the-year increase in August. Prices for final demand excluding foods, energy and trade services inched up 0.1%, after rising 0.2% in August.
In September, prices for final demand services increased 0.2%, offsetting a 0.2% decline in prices for final demand goods. While both food (1.0%) and other goods (0.2%) prices saw an uptick, a 2.7% drop in energy prices more than balanced out those increases. The largest underlying increase was a 0.3% rise in transportation and warehousing services prices, although prices for both trade services and other services also increased slightly. The rise in transportation and warehousing services prices in September follows a significant price decline of 0.9% in August.
Prices within intermediate demand fell in September, continuing the declines from August. Processed goods for intermediate demand dropped 0.8%, with prices for processed energy goods leading the decrease. On the other hand, prices for processed foods and feeds rose 0.9%. Over the 12 months ending in September, prices for processed goods for intermediate demand fell 2.7%.
Meanwhile, prices for unprocessed goods for intermediate demand moved down 3.2% in September, after declining 3.1% in August. The decrease was driven by a 12.6% drop in unprocessed energy materials. In contrast, unprocessed foodstuffs and feedstuffs and nonfood materials less energy prices increased 2.7% and 1.9%, respectively. Over the 12 months ending in September, prices for unprocessed goods for intermediate demand fell a dramatic 9.5%.
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