US Producer Prices in July Rise 0.1% Month-on-Month... Below Expectations

[Image source=Reuters Yonhap News]

The U.S. Producer Price Index (PPI) for July rose at a slower pace than experts had anticipated.

According to the U.S. Department of Labor on the 13th (local time), the producer price index in the U.S. increased by 0.1% compared to the previous month in July.

This rise was slower than June's 0.2% increase and also fell short of the 0.2% increase forecasted by experts compiled by Dow Jones.

Compared to the same month last year, it rose by 2.2%, also below the expected 2.3%.

Prices for final demand goods increased by 0.6% month-over-month, but prices for final demand services decreased by 0.2%, offsetting the rise in goods prices.

The core producer price index, which excludes energy and food, rose by 0.3% month-over-month, exceeding the 0.2% increase forecasted by experts.

Year-over-year, it increased by 3.3%.

Since producer prices are reflected in final consumer goods prices with a certain time lag, they serve as a leading indicator for consumer prices.