The August advance in the finished goods index can be traced primarily to prices for finished energygoods, which rose 2.2 percent. The index for finished goods less foods and energy edged up 0.1 percent.By contrast, prices for finished consumer foods fell 0.3 percent in August.
The index for finished energy goods climbed 2.2 percent in August after decreasingin each of the previous four months. Leading this rise, the gasoline index increased 7.5 percent. Higherprices for liquefied petroleum gas and home heating oil also were factors in the finished energy goodsadvance. (See table 2.)
The index for finished goods less foods and energy inched up 0.1 percent in August, itstenth straight rise. A 0.6-percent increase in prices for pharmaceutical preparations was a major factor inthe August advance. Higher prices for light motor trucks also contributed to the rise in the finished coreindex.
The index for finished consumer foods fell 0.3 percent in August, its fourth decrease inthe last five months. The August decline can be traced to lower prices for fresh vegetables, excludingpotatoes, which moved down 11.2 percent.
The Producer Price Index for Intermediate Materials, Supplies, and Components increased 0.3 percent inAugust following decreases in July and June. Accounting for about eighty-five percent of this broad-based advance, prices for intermediate energy goods rose 1.3 percent. The indexes for both intermediatematerials less foods and energy and for intermediate foods and feeds also contributed to this increase,moving up 0.1 percent and 0.9 percent, respectively. On a 12-month basis, prices for intermediate goodsclimbed 5.0 percent in August, continuing their deceleration from an 8.7-percent peak in April 2010.(See table B.)
The index for intermediate energy goods moved up 1.3 percent in Augustfollowing two consecutive monthly declines. A major factor in this advance was a 6.4-percent rise indiesel fuel prices. The indexes for gasoline and electric power also contributed significantly to higherintermediate energy goods prices. (See table 2.)
The index for intermediate goods less foods and energy edged up 0.1 percent inAugust after declining 0.4 percent in each of the prior two months. Leading this increase, prices forprimary nonferrous metals climbed 8.0 percent. Higher prices for nonferrous mill shapes also were afactor in the intermediate core advance.
The index for intermediate foods and feeds rose 0.9 percent in August, its largestincrease since a 1.8-percent gain in December 2009. The August advance was led by formula feedprices, which moved up 3.3 percent.