The June producer price index report rose 1.8% and 0.5% core, much worse than expected.
June PPI’s core increased 0.5251% unrounded. Over the year, overall PPI was down 4.6% and core was up 3.3%, appearing to be inflections to lesser declines.
Energy printed up 6.6% as all areas surged except residential electric at a 0.9% decline. Foods printed 1.1% higher, led by jumps in fresh and dry vegetables and eggs.
In core, light trucks jumped 3.4%, passenger cars rose 2.0%, store fixtures gained 0.9% and pharmaceuticals grew 0.8%. All were big gainers, most after posting drops in May.
A Bureau of Labor Statistics economist estimated that excluding autos, the core PPI was unchanged.
Intermediate PPI posted up 1.9% and crude rose 4.6%, also reflecting energy. Energy represented about two-thirds of the PPI rise in all cases.
— Market News International