Today: May 30, 2024
Today: May 30, 2024

Strong services drive US producer prices higher in July

Share This
Strong services drive US producer prices higher in July
August 11, 2023
Lucia Mutikani - Reuters


By Lucia Mutikani

WASHINGTON (Reuters) -U.S. producer prices increased slightly more than expected in July as the cost of services rebounded at the fastest pace in nearly a year, but the trend remained consistent with a moderation in inflationary pressures.

The producer price index for final demand rose 0.3% last month, the Labor Department said on Friday. Data for June was revised lower to show the PPI unchanged instead of nudging up by the previously reported 0.1%.

In the 12 months through July, the PPI increased 0.8% after gaining 0.2% in June, boosted by a lower base of comparison last year. Economists polled by Reuters had forecast the PPI would climb 0.2% on the month and advance 0.7% on a year-on-year basis.

The government reported on Thursday that consumer prices rose moderately in July, strengthening expectations that the Federal Reserve would likely keep interest rates unchanged next month. Since March 2022, the U.S. central bank has raised its benchmark overnight interest rate by 525 basis points to the current 5.25%-5.50% range.

The cost of wholesale services jumped 0.5% last month, the largest increase since last August, after dipping 0.1% in June.

A 7.6% surge in portfolio management fees accounted for 40% of the rise in services. There were also increases in the costs of machinery and vehicle wholesaling, outpatient care, chemicals and allied products wholesaling as well as securities brokerage, dealing investment advice and related services.

Airline fares also increased, but margins for food and alcohol retailing fell 2.5%. The cost of freight and cargo transportation also declined.

Goods prices ticked up 0.1% last month after being unchanged in June. A 0.5% rebound in the cost of food was largely offset by energy prices, which were unchanged.

Excluding the volatile food and energy components, the so-called core goods prices were unchanged last month after falling 0.2% in June.

The narrower measure of PPI, which strips out food, energy and trade services components, rose 0.2% after inching up 0.1% in June. In the 12 months through July, the so-called core PPI increased 2.7%, matching June's rise.

(Reporting by Lucia Mutikani; Editing by Paul Simao and Andrea Ricci)

Popular

Snoop Dogg look-alike mannequin fools no one: CHP's latest traffic stop

Santa Fe Springs, CA- A driver in California was caught off guard when pulled over by the California Highway Patrol for driving in the carpool lane with a mannequin posing as a passenger in the front seat. According to the Santa Fe Springs division of the CHP, the driver’s attempt to bypass traffic by using a dummy resulted in the issuance of a ticket. The story surfaced after CHP’s Santa Fe Springs office shared the encounter on social media. The post showed a picture of the mannequin, sporting a black hoodie and sunglasses, seated in the front. Many are curious,

Snoop Dogg look-alike mannequin fools no one: CHP's latest traffic stop

“Just shells,” kids plead, as mom faces $88K fine

PISMO BEACH, CA- A mother from California was fined $88,000 after her children mistakenly collected clams from a beach without a fishing license, thinking they were seashells. Charlotte Russ was with her family on a trip to Pismo Beach, famously called the “Clam Capital of the World,” when the incident occurred, according to ABC 7. The Department of Fish and Wildlife approached Russ and informed her that her children had collected 72 clams illegally. She was issued a ticket for the violation. “Right before we went, that’s when I opened it, and that’s when I saw the amount,” Russ shared.

“Just shells,” kids plead, as mom faces $88K fine

US Supreme Court won't hear Maryland school district gender identity case

The U.S.

US Supreme Court won't hear Maryland school district gender identity case

Judge rejects gag order on Trump in Florida documents criminal case

By Sarah N.

Judge rejects gag order on Trump in Florida documents criminal case

Former intelligence chief Dick Schoof proposed as Dutch PM

By Stephanie van den Berg and Bart H.

Former intelligence chief Dick Schoof proposed as Dutch PM

Related

Richard M. Sherman, who fueled Disney charm in 'Mary Poppins' and 'It's a Small World,' dies at 95

Richard M. Sherman, who fueled Disney charm in 'Mary Poppins' and 'It's a Small World,' dies at 95

After firing, Cavs embark on coaching search with All-Star Donovan Mitchell's future bigger priority

After firing, Cavs embark on coaching search with All-Star Donovan Mitchell's future bigger priority

Fed's Waller ponders future path of underlying interest rates

Fed's Waller ponders future path of underlying interest rates

Cavaliers fire coach J.B. Bickerstaff despite back-to-back playoff appearances and steady progress

Cavaliers fire coach J.B. Bickerstaff despite back-to-back playoff appearances and steady progress
- Advertisement -
Advertisement: Limited Time Offer