By Manuel Gutierrez, Consulting Economist to NKBA

 

Despite the drop, YOY increase of 17.1 percent is double the inflation rate of consumer products.

 

  • July’s producer price drop was the first since last December.

 

  • The range of annual price changes is significant, from a 78 percent increase for home heating oil to a 3 percent drop for lumber.

 

  • Price increases for construction products overall are 21 percent higher than a year ago and have been marching upward nearly unabated since the beginning of last year.

 

  • Producer prices for household appliances and furniture  are up 14 percent and 12 percent, respectively YOY.

 

  • Prices for kitchen cabinets, one of the few manufacturer products within K&B tracked by the Bureau of Labor Statistics, have risen 5.4 percent since last year, with custom cabinets 14.7 percent higher.

 

  • Producer price increases of this magnitude are likely to result in continued pressure on consumer prices for the near future.