Producer Prices Surge 0.7% in August 2023, Led by Energy Costs

In August 2023, the U.S. Producer Price Index (PPI) for final demand increased by 0.7 percent, marking the largest monthly rise since June 2022. This surge was primarily driven by a 2.0-percent increase in the index for final demand goods, with energy prices leading the way with a 10.5-percent jump. Conversely, prices for final demand services advanced by a modest 0.2 percent. The index for final demand, excluding foods, energy, and trade services, also increased by 0.3 percent, mirroring July’s performance. Over the 12 months ending in August, prices for final demand, excluding food, energy, and trade services, rose by 3.0 percent, the most significant increase since April. Within intermediate demand categories, processed goods and unprocessed goods advanced, while services edged up. Stage 4 intermediate demand prices increased by 0.6 percent, the most substantial rise since January, while stage 3 intermediate demand prices jumped by 0.9 percent. Stage 2 intermediate demand prices rose by 0.7 percent, and stage 1 intermediate demand prices surged by 1.6 percent in August 2023.

Read the full report from the Bureau of Labor Statistics.

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