Tuesday, August 17, 2010

PPI: Headline Up 0.2%; Core Prices Up 0.3%

In July, the Producer Price Index for finished goods rose 0.2%. This reversed a three month trend of declines. The prior declines were primarily driven by lower energy prices. In July, energy prices rose somewhat. However, the increase was primarily driven by non-energy products, particularly pharmaceutical inputs and light trucks. The core index, which does not include energy or food product prices, rose by 0.3%. This was the fastest clip thus far this year. From a year prior, the core index was up 1.5%. Though this is still quite modest producer price inflation, it is the highest year-over-year increase since September 2009. The top line index was 4.1% higher from a year prior.

Source: Bureau of Economic Analysis

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