Economic news
12.07.2024

U.S. PPI advances more than predicted in June

The Labor Department reported on Friday the U.S. producer-price index (PPI) went up 0.2 per cent m-o-m in June, following an upwardly revised flat m-o-m performance (from -0.2 per cent m-o-m) in May.

For the 12 months through June, the PPI jumped by 2.6 per cent, accelerating from an upwardly revised 2.4 per cent climb (from +2.2 per cent) in the previous month. This marked the strongest annual gain since March 2023 (+2.7 per cent).

Economists had predicted the headline PPI would rise 0.1 per cent m-o-m and 2.3 per cent over the past 12 months.

According to the report, the June increase in the headline index was due to a 0.6-per cent m-o-m gain in the index for final demand services. Meanwhile, the index for final demand goods fell 0.5 per cent m-o-m.

Excluding volatile prices for food and energy, the PPI soared 0.4 per cent m-o-m and 3.0 per cent over 12 months. Economists had foreseen advances of 0.2 per cent m-o-m and 2.5 per cent y-o-y for June. In May, the core PPI showed a 0.3 per cent m-o-m gain (revised from flat m-o-m in the initial estimate) and a 2.6 per cent y-o-y surge (revised from +2.3 per cent y-o-y in the initial estimate).

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