Producer price index for June shows smallest rise in business inflation in over 2 years
July 12 (UPI) — The main gauge that measures business prices in the United States recorded a slight increase for the month of June — which capped the smallest annual rise in business inflation in more than two years, the Labor Department said Friday.
The monthly producer price index increased by 0.1 percent last month, but showed inflation was largely subdued. The report also said the cost of U.S. energy fell for the second straight month.
“The final demand index rose 1.7 percent for the 12 months ended in June, the lowest rate of increase since … January 2017,” the department said.
The yearly increase also slowed in May, a sign analysts said showed the U.S. economy was withstanding rising inflation.
Friday’s report said final demand services increased 0.4 percent in June, the largest since October. The costs of trade services, up 1.3 percent, accounted for most of the index’s rise in June. Transportation and warehousing prices rose 0.3 percent.
June’s core PPI didn’t rise at all last month, the index showed. Core services, those excluding the volatile energy, food and trade services, showed no change after two straight months of increases.
Friday’s report followed June’s consumer price index on Thursday, which showed core inflation climbed by the largest amount in a year and a half.