Economy

Labor Department Shows Inflation Uptick in Producer Prices

The U.S. Labor Department released its Producer Price Index (PPI) for final demand for the month of June on Wednesday morning. We were worried that wholesale inflation would be stronger than what the economists were modeling for, and the good news is that the PPI was only marginally higher than expected.

The headline PPI for final demand in June was up by 0.4%. Dow Jones and Bloomberg were both calling for the headline PPI to be up by 0.3% in June. This was up from -0.2% in May, which was left static in the revision. The core PPI, excluding food and energy, was up by 0.2% in June. Dow Jones and Bloomberg were both calling for the core PPI to be up by 0.2%, after a -0.1% drop in May.

As previously noted, investors use the PPI as a precursor of consumer prices because rising costs of production can bring higher prices at the consumer level. It is a chain that is obvious, but there are frequently some exceptions.

The new PPI calculation has also been changed to measure the PPI for final demand. This change in how the data are presented still has many investors and traders a bit confused around the release, but eventually data are just data.

ALSO READ: 10 Cities Where Wages Are Soaring

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.