United States Producer Price Index rose 0.2% in July vs up 0.1% expected
August 17, 2015, 8:12 am

U.S. producer prices rose for a third straight month in July, but inflation pressures remain benign against the backdrop of lower oil prices and a strong dollar.

The Labor Department said on Friday its producer price index for final demand increased 0.2 percent last month after increasing 0.4 percent in June.

An increase of 0.4 percent in services prices, which offset a fall of 0.1 percent in the cost of goods, accounted for the increase in the PPI last month.


In the 12 months through July, the PPI fell 0.8 percent after declining 0.7 percent in June. It was the sixth straight 12-month decrease in the index.


Economists polled by Reuters had forecast the PPI edging up 0.1 percent last month and falling 0.9 percent from a year ago.

A strong dollar and weaker oil prices are keeping a lid on inflation, which has some economists believing that the Federal Reserve will be hesitant to raise interest rates next month.

Inflation has been persistently running below the Fed`s 2 percent target. Last month, wholesale gasoline prices rose 1.5 percent after gaining 4.3 percent in June.


Food prices dipped 0.1 percent in July as egg prices tumbled after surging in recent months. Food prices increased 0.6 percent in June. Wholesale chicken egg prices fell 24.2 percent in July after soaring a record 84.5 percent in June.

The volatile trade services component, which mostly reflects profit margins at retailers and wholesalers, rose 0.4 percent in July after increasing 0.2 percent in the prior month.

A key measure of underlying producer price pressures that excludes food, energy and trade services rose 0.2 percent last month after increasing 0.3 percent in June. The so-called core PPI was up 0.9 percent in the 12 months through July.

Comments

m1.png m2.png m3.png m4.png m5.png
f1.png f2.png f3.png f4.png f5.png
+ =
Exchange Rates
EUR/USD 1.0664
EUR/BRL 3.4367
EUR/AUD 1.4128
EUR/TRY 4.0371
Weather

London

Jan19      10:21
  1. Humidity 47%
  2. Downwind
  3. Winds 0 kph
Now
-14℃
Latest Videos
VIDEO: The Biology of Bliss and the Human OS - Jamie Wheal
Terror and Tourism: Changing the Travel Landscape
Earth In 2050 - HD Documentary 2015
The drive for gender equality in corporate Japan
Plane touches down then aborts during storm (VIDEO)
The Fermi Paradox II — Solutions and Ideas – Where Are All The Aliens (VIDEO)
Latest Photos
best cities for small businesses
Best Jobs in America (PHOTOS)
Inside the coolest private jets (PHOTOS)
The best hotel club floors in the world
Winning Images from the 2015 National Geographic Traveler Photo Contest
PHOTOS: Raging Wildfires Prompt Major Evacuation