S&P 500
7,401.00
+0.91%
Dow Jones
49,665.70
+0.19%
Nasdaq 100
29,241.00
+2.43%
Russell 2000
2,860.88
+0.82%
FTSE 100
10,263.70
+0.48%
Nikkei 225
63,767.70
+2.68%

Companies and Brands

Tame Producer Price Inflation, But First Uptick In Months

Photo of Jon C. Ogg
By Jon C. Ogg Updated Published
Follow 24/7 Wall St. on Google
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Invalid Image
The Labor Department’s report on wholesale inflation remains muted.  The Producer Price Index for the month of June was up by +0.1% and the core-rate which excludes food and energy was up by +0.2%.  Dow Jones was calling for -0.3% on the headline and +0.2% on the core rate; Bloomberg had estimates of -0.4% on the headline rate and +0.2% on the core rate.  The readings for May were -1.0% on the headline and +0.2% on the core rate.

While this is still low in inflation, the gains were the first in four months.  Food prices and truck prices contributed to those gains. The annual rate was 0.7% for producers, but the core rate on an annualized basis was up 2.6%.  As a reminder, the FOMC has an inflation target of roughly 2.0%.

Food prices rose 0.5% in June.  It is also worth noting that crude goods or raw materials were down by 3.6% and that implies that prices may remain muted in the coming months as long as the recent rise in drought-related prices does not get out of hand.

JON C. OGG

Photo of Jon C. Ogg
About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

Continue Reading

Consumer Prices Look More Tame Into Year-End as Oil and Energy Prices Fall
Jon C. Ogg |

Consumer Prices Look More Tame Into Year-End as Oil and Energy Prices Fall

After a somewhat muted Producer Price Index report for November, the U.S. Department of Labor has released its November reading…

Jon C. Ogg |

Why the Fed’s Inflation Targets Finally Look Reasonable and Present

The Department Labor is set to release its Producer Price Index on Tuesday and will then release the Consumer Price Index on Wednesday.…

Inflation Reports Throw Curve Ball for Fed Rate Hike Ambitions
Jon C. Ogg |

Inflation Reports Throw Curve Ball for Fed Rate Hike Ambitions

On a day when the Federal Reserve is expected to hike interest rates, investors, economists and business owners might wonder…

Jon C. Ogg |

PPI Erases at Least Some Deflation Fears

The Producer Price Index gain was larger than expected in June. That is good news if you are cheering for…

PPI Report Resurfaces With Hints of Deflation Again
Jon C. Ogg |

PPI Report Resurfaces With Hints of Deflation Again

It's one thing to say that there is no serious inflation. It's another issue entirely to be talking about the…

Inflation Rate at Acceptable Fed Levels in February
Jon C. Ogg |

Inflation Rate at Acceptable Fed Levels in February

The U.S. Department of Labor has released its consumer price index (CPI) as being up 0.2% on the headline CPI…

Fed Rate Hike Conundrum: PPI Signals More Deflationary Pressure
Jon C. Ogg |

Fed Rate Hike Conundrum: PPI Signals More Deflationary Pressure

Friday's PPI report from the U.S. Department of Labor showed that wholesale prices for final demand fell in October.

Jon C. Ogg |

FOMC Has Little Inflation Worry as May CPI Remains Tame — June Is Another Story

ThinkstockThe U.S. Labor Department already released its reading for wholesale prices via the Producer Price Index for May, and now…

Consumer Inflation Now Firmly Hitting Janet Yellen’s Rate Hike Threshold
Jon C. Ogg |

Consumer Inflation Now Firmly Hitting Janet Yellen’s Rate Hike Threshold

Just last week, producer prices indicated a stalling out at the wholesale level. But what happens in prices at the…

Top Gaining Stocks

Akamai
AKAM • Vol: 21,556,944
Micron Technology
MU • Vol: 65,135,624
Intel
INTC • Vol: 227,504,426
Monster Beverage
MNST • Vol: 15,284,847
Dell Technologies
DELL • Vol: 12,167,525

Top Losing Stocks

Mettler Toledo International
MTD • Vol: 539,266
Motorola Solutions
MSI • Vol: 3,101,643
Expedia
EXPE • Vol: 4,189,786
Coterra Energy
CTRA • Vol: 73,319,495
Fidelity National Information Services
FIS • Vol: 11,468,820