Producer Price Index Above Expectations in June

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Economic Update: Producer Price Index

The Labor Department reported the Producer Price Index (an indication of inflation at the wholesale level) for June rose by +0.1%, which was above the consensus estimate for a decline of -0.5%.

On a year-over-year basis, PPI is up +0.7%.

Prior month’s readings for comparison purposes:

• May: -1.0%
  
• April: -0.2%
  
• March: +0.0%
  
• February: +0.4%
  
• January: +0.1%
  
• December: -0.1%
  
• November: +0.3
  
• October: -0.3%
  
• September: +0.8%
  
• August: 0.0%
  
• July: +0.2%
  
• June: -0.4%

When you strip out food and energy, the so-called Core PPI came in at +0.2%, which was in line with the consensus for +0.2% and last month’s +0.2% .

On an annual basis, Core PPI is up +2.6%.

This report would seem to argue against the idea that the Fed could use deflation as an argument for more QE.

Other stories on the US Economy to review:

• Import/Export Prices Down in June
  
• NFIB Small Business Optimism Index Pulls Back Again
  
• Jobs Report Disappoints Again in June
  
• ISM Non-Manufacturing Index Disappoints in June
  
• ADP Employment Surprises to Upside
  
• Challenger Planned Job Cuts Best in Year
  
• Factory Orders BTE in May
  
• Construction Spending Above Consensus in May
  
• ISM Manufacturing Plunges in June
  
• Chicago PMI Headline Improves But...
  
• US GDP Grew at +1.9% Rate in Q1
  
• Durable Goods Up for First Time in 3 Mos
  
• Richmond Fed Index Declines for Third Month
  
• Consumer Confidence Falls Again in June
  
• Case-Shiller Home Price Index Improves
  
• Chicago Fed National Activity Index Falls in May
  
• Existing Homes Sales Fall But Prices Rises
  
• LEI Rises in May: Points to "Muddle Through"
  
• Philly Fed Plunges in June
  
• Housing Starts Down But Permits Up
  
• Industrial Production and Capacity Utilization Below Expectations
  
• Empire Manufacturing Disappoints in June
  
• CPI Declines in May
  
• Business Inventories Above Expectations in April
  
• Retail Sales Fall Across Board in May

 

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