On an unadjusted basis, the index for final demand advanced by 2.2 per cent for the 12 months ended in July 2024.

The July rise can be attributed to prices for final demand goods, which moved up by 0.6 per cent—the largest advance since a 1.1-per cent jump in February. In contrast, the index for final demand services fell by 0.2 per cent, a BLS release said.

Prices for final demand less food, energy and trade services grew by 0.3 per cent in July after increasing by 0.1 per cent in June. For the 12 months ended in July, the index for final demand less foods, energy, and trade services moved up 3.3 per cent.

Nearly 60 per cent of the broad-based increase in final demand goods in July can be traced to the index for final demand energy, which moved up by 1.9 per cent. Prices for final demand goods less food and energy also rose by 0.2 per cent.

A quarter of the July rise in the index for final demand goods is attributable to a 2.8- per cent advance in prices for gasoline. The indexes for diesel fuel, jet fuel and basic organic chemicals also increased. Conversely, prices for electric power decreased by 1.1 per cent.

Within intermediate demand in July, prices for processed goods advanced by 0.7 per cent—the largest advance since moving up by 1.4 per cent in February, and the index for unprocessed goods increased by 3.6 per cent.

For the 12 months ended in July, prices for processed goods for intermediate demand moved up by 0.8 per cent, the first increase since a 2.1-per cent rise for the 12 months ended February 2023.

Over 60 per cent of the July increase in prices for processed goods for intermediate demand can be traced to a 12.9-per cent jump in the diesel fuel index. Prices for basic organic chemicals, gasoline, jet fuel and utility natural gas also moved higher. In contrast, the index for commercial electric power fell by 1.2 per cent.

The index for unprocessed goods for intermediate demand moved up by 3.6 per cent in July, the largest advance since rising by 4.6 per cent in August 2022.

Nearly two-thirds of the broad-based increase in July is attributable to a 6.2-per cent jump in prices for unprocessed energy materials. Over 40 per cent of the July advance in the index can be traced to a 5.5-per cent increase in crude petroleum prices.

Fibre2Fashion News Desk (DS)