U.S. producer price index rises by 0.2 percent in July; tops estimates
Nathan Andrada – Fourth Estate Contributor
Washington, DC, United States (4E) – Producer prices in the U.S. climbed by more than anticipated for the month of July, due to a rise in prices for services, according to a report by the Labor Department released on Friday.
The producer price index jumped 0.2 percent in July, compared with a 0.4 percent rise in June and economists estimate for a 0.1 percent gain.
The larger-than-projected rise in prices came despite a drop in energy prices, which declined by 0.6 percent in July after a 2.4 percent increase in the earlier month. Prices of food also fell by 0.1 percent.
The core producer price index, which excludes food and energy prices, jumped by 0.3 percent in July, which is in line with the increase seen in the prior month. Economists projected the core producer price index to climb by 0.1 percent.
The advance in core prices partially reflected a 0.4 percent gain by the gauge for final demand services, the widest gain last October.
The gauges for trade services as well as services less trade, transportation, and warehousing both increased by 0.4 percent, while the measure for transportation and warehousing services recorded a 0.2 percent increase.