The Bureau of Labor Statistics (BLS) reported Wednesday wholesale inflation falling overall in August from July. Much of the decrease came in lower energy costs.
The producer price index, a measure of prices paid to goods and services producers, fell 0.1% in August from July. Excluding food and energy costs, final demand prices rose 0.2%.
The index rose 8.7% in August from August 2021, the lowest annual rise since 2021.
Gasoline index prices fell 12.7% from July, accounting for more than three-quarters of the final demand price decline. The result is continued rising inflation in economic sectors affecting RV manufacturers and suppliers.
Goods inputs for Stage 4 intermediate demand, measuring the products purchased by industries primarily producing output sold to final demand, such as RV manufacturers, fell 0.2% in July. Year-over-year Stage 4 demand rose 8.7%.
Stage 3 intermediate demand, measuring suppliers to Stage 4 producers such as RV manufacturers, fell 3.6% in July. Overall, demand rose 12.1% since August 2021. The annual increase is down sharply from the 18.1% rise recorded in June.
Stage 2 intermediate demand, suppliers to Stage 3 suppliers, turned around in August, rising 6% from July. In July, goods inputs fell a revised 10.2% from June. Overall, Stage 2 intermediate demand rose 20.4% from August 2021, up from a 15.6% year-over-year increase registered in July.
Stage 2 inputs such as fuels and lubricants and the arrangement of freight and cargo transportation continued to increase in August. The result is inflationary pressures likely headed to Stage 3 suppliers and Stage 4 final goods producers.
Stage 1 goods demand fell 1.7% in the August from July, the same level registered the month before. Overall, demand in the past 12 months rose 10.4%.
