Index for final demand goods falls 1.8%, largest decline since April 2020, final demand energy prices drop 9%
US producer inflation annually rose 9.8% in July, according to the Department of Labor figures released on Thursday.
The latest figure is a slowdown from an 11.3% gain in June when producer prices marked the largest annual increase since a record 11.6% jump this March.
The Producer Price Index (PPI), which measures changes in the price of goods and services from a producer perspective, came lower than the 10.4% market estimate.
On a monthly basis, the PPI declined 0.5% in July, also coming better than the market expectation of a 0.2% gain. The figure was a 1% increase in June.
“The index for final demand goods fell 1.8% in July, the largest decline since moving down 2.7% in April 2020. The July decrease can be traced to a 9% drop in prices for final demand energy,”said the statement.
Core producer prices, which exclude food, energy, and trade, moved up 0.2% in July on a monthly basis, also softening from the previous month’s 0.3% gain.
The core PPI in July increased 5.8% on an annual basis, also easing from a 6.4% year-on-year gain that was recorded in June.