Wholesale Inflation Remains Unchanged In June
Synopsis
The producer price index, which is a gauge of prices that producers get for their goods and services in the open market, was unchanged in June after falling 0.2% in May.
A measure of wholesale prices remained unchanged in June, after unexpectedly falling in May.
The producer price index, which is a gauge of prices that producers get for their goods and services in the open market, was unchanged in June after falling 0.2% in May.
On a year-on-year basis, PPI stood at 2.3% in June, compared to 2.7% in May.
Data from the Bureau of Labor Statistics showed that the core PPI was also unchanged during the month, according to seasonally adjusted numbers. A report by CNBC stated that both PPI and core PPI were expected to rise 0.2% in June.
However, the final demand goods prices increased 0.3% in June, just as they did in May. This was offset by a 0.1% decline in the final demand services prices during the month.
The BLS also revised the final PPI number for May, from a 0.1% increase to a 0.3% rise.
Within goods, the BLS noted an increase of 0.8% in communication and related equipment; energy prices rose 0.6%, while egg prices fell 21.8% during the month.
As for the decline in services, the agency observed that more than half of this fall was due to a 4.1% decrease in prices for traveler accommodation services.
Prices for portfolio management services rose 2.2% during the month.
This comes a day after the consumer price index (CPI) data showed that inflation was hotter than expected. CPI rose 0.3% in June on a seasonally adjusted basis, after a 0.1% rise in May.
Meanwhile, U.S. equities rebounded in Wednesday’s pre-market trading session as investors digest inflation data.
The SPDR S&P 500 ETF (SPY) was up 0.23% at the time of writing, while the Invesco QQQ Trust (QQQ) was higher by 0.1%. Retail sentiment around the S&P 500 ETF on Stocktwits has been in the ‘neutral’ territory over the past week.
The iShares 7-10 Year Treasury Bond ETF (IEF) was up 0.14% during Wednesday’s pre-market trading session.
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