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Producers price index increased 0.1 percent in August

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Sept. 11 (UPI) — The Producer Price Index, which measures the average change in the prices domestic producers receive for their output, increased 0.1 percent in August, according to a new report by the U.S. Bureau of Labor Statistics released Wednesday.

The rise in the monthly index is not expected to change an expected cut in rates by the Federal Reserve next week in the face of a weakening economy.

The bureau reported final demand prices in July moved up 0.2 percent and another 0.1 percent in June. Before seasonal adjustments, the final demand index rose 1.8 percent for the 12 months ended in August.

MarketWatch reported that economists it surveyed before the announcement expected there would be no change in the Producer Price Index.

“In August, the advance in final demand prices is attributable to a 0.3-percent increase in the index for final demand services,” the report said. “In contrast, prices for final demand goods fell 0.5 percent. The index for final demand less foods, energy, and trade services rose 0.4 percent in August following a 0.1-percent decline in July.”

Final demand prices for the fiscal year ending in August minus foods, energy, and trade services increased 1.9 percent.

The bureau said the one big reason for the increase in prices for final demand services was the index for guestroom rental, which jumped 6.4 percent.

The report said indexes for such items as fuels and lubricants retailing; apparel, footwear, and accessories retailing; chemicals and allied products wholesaling; partial gaming receipts; and insurance increased as well.

The bureau added that nearly two-thirds of the August decline in the goods index for final demand goods can be attributed to the fall in gasoline prices at 6.6 percent.

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