Producer Price Index Declined 0.9% in July
The U.S. Bureau of Labor Statistics reported that the Producer Price Index (PPI) for finished goods declined 0.9% in July after seasonal adjustment, following a 1.8% increase in June. All major categories experienced declines in prices. Index for energy goods fell by 2.4%, and prices of foods declined by 1.5%. Crude goods prices fell by 4.5% while prices of the intermediate goods decreased 0.2%.
The lower prices suggest that beginning phase of economic recovery in the U.S. is quite slow-paced. The upside, however, is that inflationary pressure is minimal in the short to medium term.
Changes in U.S. Producer Price Indices (%)
Data source: Bereau of Labor Statistics
