Lower prices for energy and petroleum products were mainly responsible for the decline. Excluding energy and petroleum products, the IPPI decreased -0.2%.
The IPPI rose 0.2% year-over-year in August, marking the fifth consecutive increase. The main drivers of this growth were unwrought precious metals (+24.0%) and aluminum (+33.2%), which were boosted by economic uncertainty. Petrochemicals also saw a significant price increase (+12.2%). However, prices fell for diesel fuel (-17.1%), motor gasoline (-11.8%), and grain and oilseed products (-26.9%) over the same period.
For the RMPI:
The RMPI declined -3.1% month over month in August, led by lower prices for crude energy products (-5.0%). Excluding crude energy products, the RMPI fell -1.8%
The main driver of the year-over-year decline in August was lower crude energy prices, with conventional crude oil down 5.9% and synthetic crude oil down 8.5%. Other notable price drops included canola (-26.5%) and nickel ores and concentrates (-19.1%), largely due to elevated supply in these markets over the past 12 months
This article was written by Greg Michalowski at www.forexlive.com.
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