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Producer prices for final demand increased 0.8 percent over the year ended July 2023

August 17, 2023

The Producer Price Index for final demand increased 0.8 percent from July 2022 to July 2023. Prices for final demand goods declined 2.5 percent over the year, while final demand prices for services rose 2.5 percent.

Producer Price Index for selected final demand components, 12-month percent change, not seasonally adjusted, July 2023
Commodity 12-month percent change

Goods

-2.5

Foods

-0.2

Fresh fruits and melons

-7.8

Fresh and dry vegetables

11.9

Meats

9.1

Processed poultry

-27.5

Dairy products

-12.7

Soft drinks

12.6

Energy

-16.8

Residential electric power

6.3

Residential natural gas

-10.0

Gasoline

-24.5

Jet fuel

-38.3

Home heating oil and distillates

-32.8

No. 2 diesel fuel

-45.2

Goods less foods and energy

1.9

Industrial chemicals

-17.4

Pharmaceutical preparations

2.4

Passenger cars

-1.7

Trucks, 14,000 lbs. and under

3.5

Aircraft and aircraft equipment

4.4

Cigarettes, including nontobacco

12.2

Services

2.5

Trade services

1.2

Machinery and equipment and parts and supplies wholesaling

0.8

Food and alcohol retailing

8.0

Health and beauty retailing, including optical goods

2.8

Apparel, jewelry, footwear, and accessories retailing

3.5

Automobiles and automobile parts retailing

-17.4

Fuels and lubricants retailing

-9.9

Transportation and warehousing services

-6.0

Rail transportation of freight and mail

-1.7

Truck transportation of freight

-12.4

Water transportation of freight

0.7

Air transportation of freight

-8.4

Courier, messenger, and U.S. postal service

4.6

Airline passenger services

3.4

Less trade, transportation, and warehousing

4.2

Loan services (partial)

29.3

Securities brokerage, dealing, investment advice, and related services

37.2

Portfolio management

10.1

Outpatient care (partial)

1.6

Inpatient care

3.9

Traveler accommodation services

1.7

Note: All data are subject to revision 4 months after originally published.

The over-the-year decrease in prices for final demand goods is partially attributable to a 27.5-percent decline in processed poultry prices within the broader food category. Additional declines include prices for Number 2 diesel fuel (–45.2 percent) and gasoline (–24.5 percent), both in the broader energy category. Industrial chemicals partially led the decline in prices for goods less foods and energy, dropping 17.4 percent from July 2022 to July 2023.

Turning to producer prices for final demand services, prices for services less trade, transportation, and warehousing increased 4.2 percent from July 2022 to July 2023. Within this category, securities brokerage, dealing, investment advice, and related services prices increased 37.2 percent and loan services (partial) costs were up 29.3 percent. Offsetting movements in final demand services categories include a 17.4-percent decline in prices for automobiles and automobile parts retailing and a 12.4-percent decline in costs for truck transportation of freight.

These data are from the Producer Price Indexes program and are not seasonally adjusted. To learn more, see "Producer Price Indexes — July 2023." Producer price indexes measure prices that U.S. producers receive for goods, services, and construction. All producer price data are subject to revision in each month after initial publication before becoming final 4 months after initial publication. We also have more charts related to the latest "U.S. Producer Price Indexes" news release.

SUGGESTED CITATION

Bureau of Labor Statistics, U.S. Department of Labor, The Economics Daily, Producer prices for final demand increased 0.8 percent over the year ended July 2023 at https://www.bls.gov/opub/ted/2023/producer-prices-for-final-demand-increased-0-8-percent-over-the-year-ended-july-2023.htm (visited April 23, 2024).

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