Producer Prices Rose 0.2 Percent in June, Slightly Higher Than Expected

Producer prices—the cost of goods and services paid by businesses—came in hotter than expected, suggesting that businesses are persistently experiencing higher costs that could eventually be passed onto consumers. In June, the Producer Price Index (PPI) rose 0.2 percent, topping the consensus estimate of 0.1 percent. This was up from the flat reading in May, which was revised higher from negative 0.2 percent, according to the Bureau of Labor Statistics (BLS). The monthly boost was driven by a 0.6 percent increase in prices for final demand services. In contrast, goods inflation fell 0.5 percent. On a year-over-year basis, the PPI climbed higher than expected, to 2.6 percent. This was up from the upwardly revised 2.2 percent in the previous month....