Producer Prices in July – Wood Products Bunt, Gypsum Slides

The Bureau of Labor Statistics (BLS) released the Producer Price Indexes (PPI) for July. Inflation in prices received by producers (prior to sales to consumers) rose 0.2% in July after a 0.4% increase in June. The increase was based on rising prices for services (0.4%), prices for goods declined (-0.1%). Prices for both food and energy goods declined. Excluding food and energy goods, prices were flat in July after a 0.4% increase in June.

Wood products prices batted in second consecutive monthly increases for softwood lumber and OSB. Softwood lumber prices rose 2.4% in July after a 1.0% increase in June. OSB price were up 1.0% after a 2.4% increase in June. Despite the increases softwood lumber and OSB prices are down for the year.

Gypsum prices slid further in July, down 0.3% for the month, and 5.6% from a February peak. Despite the declines gypsum prices are on par with the housing boom peak.

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