The Labor Department has released its Producer Price Index (PPI), a measurement of wholesale inflation. In Friday’s report, that should probably read deflation. Before you panic about deflation, just keep in mind that oil prices have surged since the end of May and this means that almost certainly you can expect higher producer prices in June.
Producer prices and final demand was down by 0.2% in May, while Bloomberg and Dow Jones were both predicting a gain of 0.1%. Even if you back out the volatile food and energy, the PPI and final demand reading was still a drop at -0.1%. Bloomberg was calling for a gain of 0.1%.
We also have to keep in mind that the PPI for final demand rose by 0.6% in April, preceded by a 0.5% gain the month before.
Equity futures are lower by 2.25 on the S&P 500 and lower by about 23 points on the DJIA. That being said, stocks have still been struggling for direction after an Iraq civil war risk sell-off rattled markets this week.
ALSO READ: Ten States With the Fastest Growing Economies
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.