Producer Prices Fall for the Second Straight Month in August

By Manuel Gutierrez, Economic Consultant to NKBA

Producer prices declined in August and July, however, they are still more than 15 percent above the same period last year. Manufacturer-level inflation was off by 1.1 percent in August, following a 2.9 percent drop in July.

• Producer-price inflation within the K+B industry ranged from a YOY high of 21 percent for Wood Windows to a low of 1 percent for Floor Coverings. 
•  Household Furniture, a category which impacts consumers more directly than most, has risen 10.4 percent since August 2021. 
• Inflation varies widely among major commodity groups, led by the 37 percent gain in Fuels & Derivative products since August 2021.
• Other product lines with significant manufacturer-level inflation likely to translate into continued high consumer prices are Farm Products, up 22 percent YOY, and Rubber & Plastics, 16 percent higher.