Producer prices rise, gold price sees uptick
(Kitco News) - The Producer Price Index (PPI) increased 0.3 percent in August, according to the U.S. Bureau of Labor Statistics (BLS).
Spot gold saw slightly higher price movement, up $7 an ounce as of 8:30 am EST.
The increase in the PPI in August was the second consecutive advance; prices saw continuous decline between April to June in the wake of the recession.
“The index for final demand less foods, energy, and trade services moved up 0.3 percent in August, the same as in both July and June. For the 12 months ended in August, prices for final demand less foods, energy, and trade services increased 0.3 percent,” the report from the BLS said.
On the services side of the index, known as final demand services, two-thirds of the advance can be attributed to a 1.2 percent increase in final demand trade services.
Nearly 20 percent of the increase in the final demand services index in August can be attributed to a 1.1 percent increase in margins for machinery, equipment, parts, and supplies wholesaling, the report noted.
Prices for final demand goods also increased, up 0.1 percent in August, the fourth consecutive increase.“Among prices for final demand goods in August, the index for plastic resins and materials rose 4.0 percent. Prices for diesel fuel, gas fuels, packaged fluid milk and related products, and nonferrous scrap also moved higher. However, energy related products, like heating oil, gasoline, and ethanol decreased.