US Producer price inflation for June continues elevated at a rapid pace, a long way from the Central Bank transitory mantra. US June PPI +11.3% y/y vs +10.7% expected, Prior was +10.8% y/y. June PPI month on month increased 1.1% (consensus 0.9%) versus a prior revised increase of 0.9% (from 0.8%). Core PPI, which excludes food and energy, rose 0.4% (consensus 0.5%) versus the prior revised increase of 0.6% (from 0.5%)
June 2022 PPI
The Producer Price Index for final demand increased 1.1 percent in June, seasonally adjusted, the
U.S. Bureau of Labor Statistics reported today.
US June PPI Highlights.
- PPI +11.3% y/y vs +10.7% expected Prior was +10.8% y/y
- PPI +1.1% m/m vs +0.8% expected
- Ex food and energy +8.2% y/y vs +8.1% expected
- Ex food and energy +0.4% m/m vs +0.5% expected
- Ex food, energy and trade +6.4% y/y vs +6.8% prior
Where the price rises were:
- Goods prices jumped 2.4%, much higher than 1.4% in May, with over half of the increase due to an 18.5% rise in gasoline prices.
- Indexes for diesel fuel, electric power, residential natural gas, motor vehicles and equipment, and processed young chickens also moved higher.
- Services cost rose 0.4%, slightly less than 0.6% in May, and mainly due to higher margins for food and alcohol retailing (3.8%).
- Prices for machinery and equipment wholesaling, outpatient care, transportation of passengers, guestroom rental, and hospital inpatient care also increased.
Energy Affect
The index for final demand goods increased 2.4% month-over-month, with over 90% of the advance owed to a 10.0% increase in prices for final demand energy.
The index for processed goods for intermediate demand rose 2.3% month-over-month with most of the increase due to a 9.9% increase in prices for processed energy goods.
The index for unprocessed goods for intermediate demand jumped 9.5% month-over-month with prices for unprocessed energy materials rising 20.4%.
US PPI June 2022
United States Producer Prices Final Demand Less Foods and Energy
Source BLS
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