February 3, 2023

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US PPI final demand for June 1.0% vs 0.6% estimate

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US PPI for June 2021

PPI final demand year on year
  • Prior report
  • PPI final demand 1.0% versus 0.6% estimate. Last month 0.8%
  • Ex food and energy 1.0%. Rose 0.7% last month
  • ex food and energy and trade 0.5%. Rose
  • final demand year on year 7.3% versus 6.6% last month
  • final demand ex food and energy year on year 5.6%
  • final demand ex food and energy and trade year on year 5.5%. This is the largest advanced since 12 month data or first calculated in August 2014

The PPI data continues to show pipeline inflation which always has a potential of making its way into the consumer prices.  The year on year increase of 7.3% is the largest cents, dated were first calculated in November 2010.

Nearly 60 percent of the June advance in the final demand index can be traced to a 0.8-percent
increase in prices for final demand services. The index for final demand goods moved up 1.2

According to the BLS,  final demand services rose 0.8 percent in June, the sixth
consecutive advance. Seventy percent of the broad-based increase in June is attributable to margins
for final demand trade services, which moved up 2.1 percent. (Trade indexes measure changes in
margins received by wholesalers and retailers.) The indexes for final demand services less trade,
transportation, and warehousing and for final demand transportation and warehousing services rose
0.3 percent and 0.9 percent, respectively.

Twenty percent of the June increase in the index for final demand services can be
traced to margins for automobiles and automobile parts retailing, which rose 10.5 percent.  Conversely, margins for apparel wholesaling fell 6.0 percent.
The indexes for machinery and equipment parts and supplies wholesaling and for gaming receipts
(partial) also declined.

They added, that within the index for final demand goods in June, prices for industrial chemicals rose
4.5 percent. Prices for gasoline, meats, electric power, processed poultry, and motor vehicles also
moved higher. In contrast, the index for oilseeds fell 11.7 percent. Prices for diesel fuel and for
distilled and bottled liquor (excluding brandy) also declined.

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