This increase followed a 0.5% advance in June and a 0.2% rise in May. Prices for finished goods other than foods and energy decreased 0.3% in July after moving up 0.2% in the previous month. At the earlier stages of processing, prices received by manufacturers of intermediate goods advanced 0.5% compared with a 0.7% gain in June. The index for crude materials climbed 3.1% after declining 1.7% in the prior month.

In July, a 1.3% increase for finished energy goods prices slightly outweighed declines of 0.3% for finished goods less foods and energy and for finished consumer foods.

Before seasonal adjustment, the Producer Price Index for Finished Goods rose 0.2% in July to 162.0 (1982 = 100). From July 2005 to July 2006, the finished goods index moved up 4.2%. Over the same period, prices for finished energy goods jumped 16.3%, the index for finished goods other than foods and energy increased 1.3%, and prices for finished consumer foods advanced 1.1%. For the 12-month period ended July 2006, the index for intermediate goods climbed 8.9%, and prices received by crude goods producers advanced 6.6%.

Finished goods

The finished energy goods index increased 1.3% in July compared with a 0.7% rise in June. Prices for residential electric power advanced 1.8% following a 2.8% decline in the previous month. The indexes for residential natural gas and lubricating grease also turned up after declining in June. Prices for liquefied petroleum gas rose more than they had a month earlier. By contrast, the gasoline index gained 0.7% after climbing 6.3% in June. Prices for home heating oil, diesel fuel, and kerosene turned down in July.

The index for finished goods other than foods and energy declined 0.3% in July after edging up 0.2% a month earlier. Prices for light motor trucks decreased 3.1% compared with a 0.4% advance in June. The indexes for passenger cars, pharmaceutical preparations, civilian aircraft, mobile homes, newspaper circulation, railroad equipment, and for integrating and measuring instruments also turned down in July.

Prices for men's and boys' apparel fell after remaining unchanged in June, and the index for alcoholic beverages advanced less than it had a month earlier. By contrast, tire prices increased 3.5% following no change in June. The indexes for women's, girls', and infants' apparel and for commercial furniture turned up in July, while prices for platinum and karat gold jewelry declined less than they had in the prior month.

The finished consumer foods index decreased 0.3% in July after rising 1.4% in June. The index for eggs for fresh use dropped 26.1% following a 27.7% climb a month earlier. Prices for fresh fruits and melons, finfish and shellfish, soft drinks, dairy products, processed fruits and vegetables, and for beef and veal also turned down in July after increasing in the prior month. The indexes for processed young chickens, confectionery end products, and pork rose less than in June. Conversely, prices for fresh and dry vegetables advanced 6.5% in July following a 7.5% decline in June.

Intermediate goods

The index for Intermediate Materials, Supplies, and Components increased 0.5% in July after advancing 0.7% in June. Prices for materials for nondurable manufacturing and for intermediate foods and feeds rose less than they had in June, while the index for intermediate energy goods turned down in July. By contrast, prices for materials for durable manufacturing and for materials and components for construction increased more in July than they had in the preceding month. The index for intermediate goods less foods and energy moved up 0.7% after rising 0.8% in June.

The materials for nondurable manufacturing index edged up 0.2% in July following a 1.0% gain in the preceding month. Prices for primary basic organic chemicals increased 2.2% after advancing 5.4% in June. The indexes for plastic resins and materials, paperboard, and synthetic fibers also rose less in July than they had in the prior month. Prices for intermediate basic organic chemicals, paper, and nitrogenates turned down following increases a month earlier. Conversely, the index for finished fabrics moved up 0.6% in July after decreasing 0.2% in June. Prices for phosphates also advanced following declines in the previous month.

Prices for intermediate energy goods inched down 0.1% in July after rising 0.4% in the prior month. Diesel fuel prices dropped 5.0% following a 5.4-percent advance in June. The indexes for jet fuel, residual fuel, and home heating oil also turned down in July. Prices for gasoline increased less than they had in June. By contrast, the industrial natural gas index moved up 2.9 percent in July after declining 7.3 percent in June. Prices also turned up in July for commercial natural gas and natural gas to electric utilities. The index for liquefied petroleum gas rose more than it had in June.

The rate of increase in the index for intermediate foods and feeds slowed from 1.0 percent in June to 0.4 percent in July. Prices for processed young chickens rose 1.9 percent following a 12.1-percent jump in June. The index for pork also advanced less in July than it had a month earlier. Prices for natural, processed, and imitation cheese and for beef and veal turned down after increasing in June. Alternatively, the index for fluid milk products moved up 1.1 percent in July following a 0.3- percent decline in the preceding month. Prices for flour and for refined sugar and byproducts advanced more than they had in June. The prepared animal feeds index increased after remaining unchanged in the previous month.


Prices for materials for durable manufacturing advanced 2.3 percent in July following a 1.1-percent gain in the prior month. The index for primary nonferrous metals jumped 11.4 percent after falling 3.5 percent in June. Prices for copper and brass mill shapes and for plywood also turned up in July. The indexes for softwood lumber and for building paper and board decreased less than they had in the previous month. By contrast, prices for aluminum mill shapes fell 2.3 percent after rising 2.4 % in June. The index for secondary aluminum also turned down in July following a gain in the previous month. Prices for semifinished steel mill products, cold finished steel bars, and unprocessed filament yarns increased less than they had in June.

Prices for materials and components for construction increased 0.7% in July after climbing 0.3% in June. The index for concrete products advanced 1.4% following a 0.2% gain in the prior month. Softwood lumber prices declined less in July than they had a month earlier. The indexes for plastic construction products, plumbing fixtures and brass fittings, and plywood turned up after falling in the preceding month. Alternatively, prices for wiring devices climbed 0.2 percent in July following a 1.4% increase in June. The index for air conditioning and refrigeration equipment also rose less than it had in the preceding month, and prices for nonferrous wire and cable fell more than in June.

Crude goods

The Producer Price Index for Crude Materials for Further Processing increased 3.1 percent in July following a 1.7% decrease in June. Prices for crude energy materials rose after falling in the previous month. By contrast, the indexes for crude foodstuffs and feedstuffs and for crude nonfood materials less energy advanced less in July than they had in the preceding month.

The index for crude energy materials turned up 4.8% after decreasing 6.8% in June. Leading this upturn, the natural gas index rose 1.2% following a 10.8% drop in the prior month. Crude petroleum prices moved up 9.4% in July after a 3.7% decline a month earlier. The index for coal increased 0.6 percent following no change in the preceding month.

Price increases for crude foodstuffs and feedstuffs slowed from 4.8% in June to 1.8% in July. The index for slaughter broilers and fryers advanced 6.4% following a 14.7% increase in the previous month. Prices for slaughter cattle also rose less in July than they had a month earlier, while the indexes for slaughter hogs, fluid milk, and for fresh fruits and melons fell after increasing in June. Conversely, corn prices climbed 8.0% following a 1.2% decline in June. The indexes for wheat, fresh vegetables (except potatoes), and soybeans also rose in July after falling in the prior month.

The crude nonfood materials less energy index increased 1.3% following a 1.7% advance in the preceding month. In July, rising prices for wastepaper; construction sand, gravel, and crushed stone; gold ores; and miscellaneous metal ore mining outweighed falling prices for iron and steel scrap, copper base scrap, aluminum base scrap, and raw cotton.

Mining.

The Producer Price Index for the Net Output of Total Mining Industries increased 5.0% in July after decreasing 4.4% in June. (Net output price indexes are not seasonally adjusted.) Leading this upturn, prices received by the industry for crude petroleum and natural gas extraction jumped 5.3% following a 6.5% drop in the previous month. Also advancing in July following declines a month earlier were the industry indexes for natural gas liquid extraction, gold ore mining, oil and gas well drilling services, bituminous coal underground mining, and crushed and broken granite mining and quarrying. Alternatively, prices received by the industry for miscellaneous metal ore mining rose 3.9% after climbing 7.0% in June. The index for oil and gas operations support activities also moved up at a slower rate than it had in the preceding month. In July, the Producer Price Index for Total Mining Industries was 212.9 (December 1984 = 100), 10.1 percent above its year-ago level.

Manufacturing.

The Producer Price Index for the Net Output of Total Manufacturing Industries inched up 0.1% in July after increasing 0.6% in June. Prices received by producers of petroleum and coal products edged up 0.1% following a 3.0% gain in the previous month. The industry group indexes for foods, paper, and machinery manufacturing also advanced less in July than they had in the previous month. Prices received by producers of transportation equipment moved down in July after registering no change in June. The indexes for beverage and tobacco manufacturing, as well as printing and related support activities, turned down after climbing in the prior month. Conversely, prices received by the plastics and rubber products industry group rose 0.6% in July compared with a 0.6% decline in June. The industry group index for medical equipment and supplies manufacturing also turned up after falling in the preceding month, while prices received by wood products manufacturers decreased less than they had in June. In July, the Producer Price Index for Total Manufacturing Industries was 159.7 (December 1984 = 100), 5.8% above its year-ago level.

Services.

Among services industries, prices received by commercial bankers fell 3.6% in July following a 5.8% jump in June. The industry indexes for portfolio management, television broadcasting, software publishers, and lessors of nonresidential buildings (excluding miniwarehouses) also moved down in July after rising a month earlier. Prices received by the scheduled passenger air transportation industry and savings institutions increased at slower rates than they had in June. By contrast, the index for general medical and surgical hospitals climbed 0.8% in July after moving up 0.1% in the prior month. Prices received by the industries for investment banking and securities dealing and for specialty hospitals (except psychiatric and substance abuse) also advanced more in July than they had in the previous month.