The Producer Price Index for final demand increased 0.1% month-over-month in June (consensus 0.2%) following a downwardly revised 0.4% decline (from -0.3%) in May. The index for final demand, less foods and energy (“core PPI”), also increased 0.1% month-over-month (Briefing.com consensus 0.2%) following a downwardly revised 0.1% increase (from 0.2%) in May.
On a year-over-year basis, the Producer Price Index for final demand was up just 0.1% while the Producer Price Index for final demand, less foods and energy, was up 2.4%.
The key takeaway from the report is that wholesale inflation pressures are clearly moderating, which should be a boon for profit margins for companies able to retain pricing power.