WASHINGTON - The June producer price data were benign although the overall print was higher than expected on a 1.9% jump in seasonally adjusted gasoline prices.
June PPI printed up 0.1% against an expectation for a dip, and core printed 0.2% higher (0.2197% unrounded). These represented a 0.7% rise overall and a 2.6% increase in core year-over-year.
Food posted up 0.5% in a rebound as price of eggs, poultry, meat (at a 3.1% hike accounting for over 90% of the gain in food), and vegetables rose.
This was the worst showing for food since a 1.0% jump in November 2011, but recall that it comes on the heels of a 0.6% decline in May. Overall, food prices are up 2.9% over the year.
Energy posted a 0.9% decrease, as liquefied petroleum gas printed down 24.7%, and diesel, home heating oil and residential electric prices fell.
Gasoline, which analysts had expected to lower the overall PPI because retail prices are lower, printed down 4.8% unadjusted but up 1.9% after adjustment. The severe monthly factor added back almost 7% -- an implied unlikely yearly swing of almost 85%.
Core PPI was boosted by a 1.8% increase for travel trailers, a 1.4% rise for light trucks, a 1.1% climb for appliances, and a 1.1% increase for pet food.
Intermediate PPI printed down 0.5% and crude fell 3.6%. Rates over the year for intermediate are now off 1.3% and for crude down 11.4%.
Good PPI numbers will take pressure off corporate margins but probably will not translate into lower CPI.
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