A boost in energy prices helped push the Producer Price Index (PPI) for final demand up a seasonally adjusted 0.4% for June, according to a Labor Department report (link opens as PDF) released today.
"Final demand" is a more comprehensive indicator than that for finished goods alone. It includes goods, services, and construction sold for personal or government use, capital investment, and export.
After falling 0.2% for May due primarily to a 0.9% drop in gasoline prices, this latest report puts price pressure back into positive territory. Analysts had expected as much, but their 0.3% estimate proved slightly too conservative.
Diving deeper, almost 90% of June's jump is directly attributable to an energy price rebound, up 2.1% over May's numbers. Gasoline made up for its May price decline by shooting back up 6.4%.
Excluding more volatile food and energy prices, the overall index increased 0.2% -- exactly in line with analyst expectations. For investors, this report details a month of moderate inflation after May's dip. Costs aren't skyrocketing for consumers, but producers also aren't enjoying larger sales. For now, prices continue to trudge steadily ahead.
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