U.S. producer prices hardly rose in June, and the annual producer-inflation increase was the smallest it has been in almost three years—“more evidence that the economy had entered a disinflation phase,” Reuters reports.
What’s going on: “The producer price index for final demand nudged up 0.1% last month, the Labor Department said on Thursday. Data for May was revised to show the PPI falling 0.4% instead of the previously reported 0.3%. In the 12 months through June, the PPI gained 0.1%. That was the smallest year-on-year rise since August 2020 and followed a 0.9% rise in May.”
- Reuters-polled economists had predicted a PPI rebound of 0.2% on the month and a year-on-year increase of 0.4%.
The details: The price of goods remained the same in June after dipping 1.6% in May. Food costs declined for the third consecutive month, while energy prices inched up 0.7%.
Core PPI: Core PPI, which excludes trade-services costs and often-volatile food and energy prices, increased 0.1% in June.
- “In the 12 months through June, the core PPI advanced 2.6% after increasing 2.8% in May.”