US PPI Showed The Biggest Annual Increase In 6-1/2 Years Last Month
US producer price index (PPI) rose more than expected last month and showed the biggest annual increase in 6-1/2 years. The US Labor Department reported its PPI rose by 0.3% mom in June, lifted by increases in gasoline prices. On annual basis, the PPI increased by 3.4%, the largest gain since November 2011. Economists had forecast the PPI gaining 0.2% mom in June and rising 3.2% yoy.
It is also reported, that core PPI, a key gauge of underlying producer price pressures that excludes food, energy and trade services, rose 0.3% last month, after gaining 0.1% in May. In the 12 months through June, the core PPI rose 2.7% after increasing 2.6% in May.
The cost of services increased 0.4% in June. The cost of healthcare services rose 0.2%. Prices for goods gained 0.1%. Wholesale gasoline prices rose 0.5%. Excluding foods and energy, goods prices rose 0.3%, rising by the same margin for a fourth consecutive month. Motor vehicle prices increased 0.4% last month.