July 19, 2022
According to the Bureau of Labor Statistics, producer prices in the US rose by a nearly record amount from a year earlier, which had a significant impact on producer prices at the wholesale level.
The producer price index, which tracks the prices paid for goods that are in demand, rose 11.3 percent from a year earlier, the biggest percentage since a record 11.6 percent in March.
As the cost of oil, natural gas, and other items skyrocketed throughout the month, approximately 90% of that gain was attributable to an increase in final demand energy costs of 10%.
The so-called core PPI, which excludes energy, food, and trade service prices, increased by 6.4 percent over the last year, down from the 6.8 percent increase in May.
The core metric rose just 0.3 percent monthly, less than the 0.5 percent Dow Jones expectation. In contrast to the prediction of 0.8 percent, headline PPI increased by 1.1 percent on the month.
The announcement follows a BLS report the previous day showing that the consumer price index, which tracks final-sale prices in the market, increased by 9.1%, marking the biggest 12-month increase since November 1981.
Source: CNBC
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