Wholesale prices rose slightly in August, meeting analysts’ expectations, as the Labor Department’s Bureau of Labor Statistics reported the final inflation gauge before the Federal Reserve board meets next week.
Although prices rose overall, all four supply-chain stages’ goods prices were flat or lower than the previous month.
The producer price index (PPI), which measures pipeline costs for raw, intermediate and finished goods, rose 0.2% in August. On an annual basis, PPI rose 1.7%, down from a 2.2% increase in July.
Stage 4 goods inputs, measuring the products purchased by industries primarily producing output sold to final demand, such as RV manufacturers, were flat in August after a 0.2% increase in July. Overall, Stage 4 intermediate demand rose 1.9% in August, down from a 2.4% increase in July.
Goods inputs for Stage 3 intermediate demand, measuring suppliers to Stage 4 producers such as RV manufacturers, fell 0.6% in August after a revised 1.2% increase in July. Overall, year-over-year Stage 3 demand rose 0.7% in August, down from a 2.2% increase in July.
Goods inputs for Stage 2 intermediate demand, measuring suppliers to Stage 3 suppliers, fell sharply, down 3.2% in August after a revised 1.6% increase in July. The initial July reading measured a 2.8% increase in goods. Overall, Stage 2 intermediate demand rose 0.2% in August after a 2.8% increase in July.
Finally, goods inputs for Stage 1 demand were flat in August after a revised 0.7% increase in July. Overall, Stage 1 intermediate demand rose 0.5% in August after a 1.6% increase in July.
