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Inflation unexpectedly rose to 2.7% in June in producer price index

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mystery-ak:
Inflation unexpectedly rose to 2.7% in June in producer price index
By
Zachary Halaschak
July 12, 2024 8:31 am
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Inflation as measured by the producer price index rose to 2.7% for the year ending in June, the Bureau of Labor Statistics reported Friday, some bad news for the Federal Reserve and President Joe Biden.

Economists had forecast a slight rise in inflation from 2.2% in May.

On a month-to-month basis, the producer price index increased by 0.2 percentage points, more than expected.

The producer price index report was preceded by a consumer price index update Thursday that showed inflation easing to 3%, the third straight CPI report showing inflation falling. The producer price index, which measures prices received by businesses and suppliers for their goods and services, is not as widely known as the CPI. But economists watch it for additional signs of price movements that may filter down to households.

“Yes, clearly, obviously, 3 (or as I call it, 2.5) good CPI reports in a row are encouraging,” Jennifer Lee, senior economist at BMO Capital Markets, wrote in a note on Friday’s report. “But still-hot price pressures at the producer level show that the Fed won’t be fully comfortable and confident to move just yet.”

The Fed wants inflation to run at 2%, so while there has been progress in bringing inflation down from its peak of about 9% in 2022, there is still a way to go for the central bank.

more
https://www.washingtonexaminer.com/news/3076993/inflation-unexpectedly-rose-to-2-7-in-june-in-producer-price-index/

mystery-ak:
Producer Inflation Surges Much Higher Than Expected, Core Inflation Hits Worst Level in Over A Year

John Carney 12 Jul 2024

The prices paid by customers of businesses in the United States unexpectedly surged in June, undercutting confidence that inflation might be waning.

The producer price index (PPI) rose 0.2 percent last month, according to data released by the government on Friday. This was twice the increase expected by economists.

The prior month’s prices were revised up, erasing what had been shown as a slight decline. According to the revised May PPI, prices were flat in the month instead of declining 0.2 percent.

Compared with a year ago, the PPI is up 2.6 percent. Economists had forecast a 12-month rise of 2.3 percent. The prior month’s year-over-year figure was revised from 2.2 percent to 2.4 percent.

The figures indicate that producer inflation accelerated in June.

Core PPI, which excludes food and energy prices, rose even more, jumped 0.4 percent. That was twice what economists had forecast. The prior month’s estimate was revised up from flat to a 0.3 percent increase.

On a 12-month basis, core prices are up three percent, a big jump from the upwardly revised 2.6 percent year-over-year increase in May. The May figure was originally reported as a 2.3 percent increase.

This is the largest year-over-year increase in PPI in over a year and the sixth consecutive increase for the index.

more
https://www.breitbart.com/economy/2024/07/12/producer-inflation-surges-much-higher-than-expected/

Bigun:
"Unexpected!" "Much Higher!"

 8bs8

DB:
"Unexpected" was the none stop description of the Obama years to frame negative news...

Kamaji:

--- Quote from: DB on July 12, 2024, 02:51:56 pm ---"Unexpected" was the none stop description of the Obama years to frame negative news...

--- End quote ---

:thumbsup:

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