Tame Producer Price Inflation, But First Uptick In Months
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%…
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
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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.
