September 19, 2007 (The Editor’s Desk is updated each business day.)

PPI in August 2007

The Producer Price Index for Finished Goods fell 1.4 percent in August, seasonally adjusted. This decrease followed a 0.6-percent increase in July and a 0.2-percent decline in June.

[Chart data—TXT]

Accounting for most of the downturn in finished goods prices, the index for energy goods fell 6.6 percent in August following a 2.5-percent rise in the prior month. Gasoline prices dropped 13.8 percent following a 3.2-percent advance a month earlier.

The index for finished consumer foods fell 0.2 percent in August after edging down 0.1 percent in July.

The index for finished goods other than foods and energy climbed 0.2 percent in August after inching up 0.1 percent in July. In August, higher prices for pharmaceutical preparations, civilian aircraft, passenger cars, alcoholic beverages, and newspaper circulation more than offset lower prices for light motor trucks, electronic computers, heavy motor trucks, and floor coverings.

From August 2006 to August 2007, prices for finished goods rose 2.2 percent, as shown in the chart.

These data are from the BLS Producer Price Index program. To learn more, see "Producer Price Indexes — August 2007" (PDF) (TXT), news release USDL 07-1399. All producer price indexes are routinely subject to revision once, 4 months after original publication, to reflect the availability of late reports and corrections by respondents.