US Producer price inflation for July fell in much the same way as July consumer inflation released the day before. For the month PPI fell 0.5% (exp +0.3%) after the 1.1% increase in June. Core PPI, which excludes food and energy, rose 0.2% (exps 0.4%) after the 0.4% increase in June. On an annual basis US July PPI final demand +9.8% y/y vs +10.4% expected and prior +11.3% Core, Ex-food and energy +7.6% y/y vs +7.6% expected.
July 2022 PPI
The Producer Price Index for final demand fell 0.5 percent in June, seasonally adjusted, the
U.S. Bureau of Labor Statistics reported today.
US July PPI Highlights.
- US PPI Final Demand (M/M) Jul: -0.5% (est 0.2; prev 1.1%)
- US PPI Final Demand (Y/Y) Jul: 9.8% (est 10.4; prev 11.3%)
- US PPI Ex Food and Energy (M/M) Jul: 0.2% (est 0.4; prev 0.4%)
- US PPI Ex Food and Energy (Y/Y) Jul: 7.6% (est 7.7; prev 8.2%)
Where the price rises were:
- 16.7% drop in gasoline prices.
- Cost of diesel fuel, gas fuels, oilseeds, iron and steel scrap, and grains moved lower.
- Cost of services edged up 0.1%, mainly due to a rise in prices for margins for fuels and lubricants retailing (12.3%) and transportation and warehousing services (0.4%).
- Producers paid more for services related to securities brokerage and dealing, hospital outpatient care, automobiles, automobile parts retailing, and transportation of passengers.
- On an annual basis, producer inflation fell to 9.8%, the lowest since October and compared to forecasts of 10.4%.
- 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
It is the first decline in the PPI in over two years, mostly due to a 16.7% drop in gasoline prices. Also, the cost of diesel fuel and gas fuels moved lower. In contrast, cost of services edged up 0.1%, mainly due to a rise in prices for margins for fuels and lubricants retailing (12.3%) and transportation and warehousing services (0.4%).
US PPI July 2022
United States Producer Prices Final Demand Less Foods and Energy
Source BLS
From the Traders Community News Desk