The Labor
Department reported on Thursday the U.S. producer-price index (PPI) increased
0.2 per cent m-o-m in July, following a downwardly revised flat m-o-m performance
(from +0.1 per cent m-o-m) in July.
For the 12
months through August, the PPI surged by 1.7 per cent, sharply decelerating from a downwardly revised 2.1 per cent surge (from +2.2 per cent) in
the previous month. This was the weakest annual rise since February (+1.6 per cent).
Economists had forecast
the headline PPI would increase 0.1 per cent m-o-m and 1.8 per cent over the
past 12 months.
According to
the report, the August gain in the headline index was due to a 0.4-per cent m-o-m
jump in the index for final demand services. Meanwhile, the index for final
demand goods was flat m-o-m.
Excluding
volatile prices for food and energy, the PPI soared 0.3 per cent m-o-m and
2.4 per cent over 12 months. Economists had predicted advances of 0.2 per cent
m-o-m and 2.5 per cent y-o-y for August. In July, the core PPI demonstrated a
0.2 per cent m-o-m decrease (revised from unchanged m-o-m in the
initial estimate) and a 2.3 per cent y-o-y climb (revised from +2.4 per cent
y-o-y in the initial estimate).