By Tom Burnett CFA
On September 14, 2022, the Bureau of Labor Statistics released the Producer Price Index data for August. The PPI fell 0.1% in August, following a decrease of 0.4% in July and an increase of 1.0% in June (data from BLS press release.) In August, there was a 1.2% decline in the prices for goods and a 0.4% increase in the final demand for services. For the 12 months ending in August, the PPI rose by 8.7%. The 12-month increase in July was 9.8%. July and August are the only months of 2022 where the 12-month increase was less than 10%.
The Core rate, excluding food and energy, rose 0.2% in August, after an increase of 0.1% in July. The 12-month increase in the Core Index was 5.6%, down from an increase of 5.8% for the 12 months ending in July. The Index for gasoline fell 12.7% in August. The 5.6% increase in the 12-months Core Index was the lowest of the year. In March, the 12-months increase in the Core Index was 7.1%, the highest annual figure of the 2022 year.
The next PPI report will be issued on October 12, 2022.
Tom Burnett CFA is Director of Research