Services Drive PPI Increase
June’s PPI rise was primarily attributed to a 0.6% increase in prices for final demand services. The surge was largely due to a 1.9% jump in margins for final demand trade services, which measure changes in margins received by wholesalers and retailers.
Goods Prices Decline
In contrast to services, prices for final demand goods decreased 0.5% in June. This decline was mainly driven by a 2.6% drop in the index for final demand energy. Notably, gasoline prices fell 5.8%, accounting for over 60% of the decrease in final demand goods.
Sector-Specific Movements
Machinery and vehicle wholesaling margins rose 3.7%, contributing significantly to the overall PPI increase. Other sectors showing price increases included automobiles and parts retailing, deposit services, and computer hardware retailing. However, truck transportation…
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