US Producer Inflation Slows to 0.1% in June
According to official data released on Thursday, annual US producer inflation softened to 0.1% in June. The figure for May was also revised down to an annual gain of 0.9% from 1.1%, as shown by the Labor Department figures.
The producer price index (PPI), which measures changes in the price of goods and services from a producer perspective, fell below market estimates of a 0.4% annual increase. In June, the PPI saw a modest gain of 0.1%, which was lower than expectations of a 0.2% increase.
Furthermore, the monthly figure for May was revised to a decline of 0.4%, rather than the initially reported decrease of 0.3%.
According to the Labor Department, the index for final demand services increased 0.2% in June, the same as in May. Prices for final demand goods were unchanged in June after decreasing 1.6% in May.
When considering core producer prices, which exclude food, energy, and trade, June saw an increase of just 0.1% after remaining unchanged in May. On an annual basis, core PPI in June showed a gain of 2.6%, down from the 2.8% increase recorded in May.
These figures suggest that inflationary pressures in the US have subsided, as the pace of producer price increases has slowed. This could have implications for the overall inflation outlook and policy decisions made by the Federal Reserve.
It is important to note that these figures are subject to revision, and future data releases will provide further insight into the state of producer inflation in the US.
Overall, the latest data indicates a cooling off of producer inflation in the US, with both annual and monthly figures coming in lower than market expectations. As the economy continues to recover from the impacts of the COVID-19 pandemic, monitoring inflation trends will be crucial for policymakers and investors alike.
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