Transmission of material in this release is embargoed until                          USDL 17-1247 
8:30 a.m. (EDT), Wednesday, September 13, 2017

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                             PRODUCER PRICE INDEXES - AUGUST 2017


The Producer Price Index for final demand advanced 0.2 percent in August, seasonally adjusted, 
the U.S. Bureau of Labor Statistics reported today. Final demand prices edged down 0.1 percent 
in July and moved up 0.1 percent in June. (See table A.) On an unadjusted basis, the final 
demand index increased 2.4 percent for the 12 months ended in August.

Three-quarters of the August increase in final demand prices is attributable to the index for final 
demand goods, which climbed 0.5 percent. Prices for final demand services inched up 0.1 
percent.

The index for final demand less foods, energy, and trade services increased 0.2 percent in August 
following no change in July. For the 12 months ended in August, prices for final demand less 
foods, energy, and trade services rose 1.9 percent.

Final Demand

Final demand goods: Prices for final demand goods advanced 0.5 percent in August, the largest rise 
since moving up 0.5 percent in April. Most of the August increase can be traced to the index for final 
demand energy, which climbed 3.3 percent. Prices for final demand goods less foods and energy 
moved up 0.2 percent. In contrast, the index for final demand foods fell 1.3 percent.

Product detail: Three-quarters of the August increase in the final demand goods index can be traced 
to prices for gasoline, which jumped 9.5 percent. The indexes for jet fuel, industrial chemicals, 
potatoes, home heating oil, and light motor trucks also moved higher. Conversely, prices for meats 
fell 3.4 percent. The indexes for fresh vegetables (except potatoes) and for plastic resins and 
materials also declined. (See table 4.)

Final demand services: The index for final demand services edged up 0.1 percent in August after 
falling 0.2 percent in July. Over 70 percent of the increase can be traced to a 0.1-percent advance in 
the index for final demand services less trade, transportation, and warehousing. Additionally, prices 
for final demand transportation and warehousing services climbed 0.3 percent. Margins for final 
demand trade services were unchanged. (Trade indexes measure changes in margins received by 
wholesalers and retailers.)

Product detail: Over half of the August increase in the index for final demand services can be 
attributed to prices for consumer loans (partial), which advanced 1.7 percent. The indexes for 
outpatient care (partial), machinery and equipment wholesaling, truck transportation of freight, and 
food retailing also moved higher. In contrast, margins for fuels and lubricants retailing fell 6.8 
percent. The indexes for chemicals and allied products wholesaling, guestroom rental, and airline 
passenger services also declined.