Producer prices for final demand goods and services increased 1.1% in June, building on the 0.9% rise in May, according to data released yesterday by the Bureau of Labor Statistics.
What’s happening: In June, producer prices for final demand goods alone spiked 2.4%, the strongest reading since March. Other noted increases:
- Energy prices went up 10.0% in June.
- Food costs increased 0.1%.
- On a year-over-year basis, food and energy prices have soared 13.0% and 54.1%, respectively.
In the past year: Over the past 12 months, producer prices for final demand goods and services have risen 11.3%, an increase from May’s 10.9% and the highest rate since the 11.6% reported in March.
Challenges continue: The June data is consistent with the sentiment reported by manufacturers in the NAM Q2 2022 Manufacturers’ Outlook Survey, NAM Chief Economist Chad Moutray said.
- “Manufacturers cite rising raw materials costs as their top challenge, followed closely by supply chain and workforce challenges, with the very significant pace of price growth in this data over the past year helping to explain why.”