US producer prices ease in June
By Michele Maatouk
Date: Thursday 13 Jul 2023
(Sharecast News) - Producer price inflation in the US eased more than expected in June, according to figures released on Thursday by the Bureau of Labor Statistics.
Producer price inflation fell to 0.1% on the year in June from a downwardly-revised 0.9% in May, coming in below forecasts of 0.4%. This marked the smallest increase since 2020.
Core consumer prices rose 2.4% on the year in June, down from 2.8% the month before and versus expectations of 2.6%.
Figures released on Wednesday showed that annual consumer price inflation in the US fell to 3% in June from 4% in May, coming in a touch below market expectations of 3.1% and marking the slowest rate in more than two years.
Oxford Economics said: "The immediate monetary policy implications are minimal as the Fed is very likely to press ahead with plans to raise rates at the July FOMC meeting. However, together with yesterday's CPI release, the report add weight to our view that will prove to be the last hike this cycle.
"The moderation in producer prices reflects improving supply chain conditions and falling goods demand, with headline PPI up just 0.1% m/m in June. Gains in core prices (less food, energy, and trade) remain more stubborn, but the monthly increases have averaged 0.1% m/m since March, a third of the prior 12-month average."
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