This is the first of three key figures that market participants are expecting this week. The official inflation data in the US will be released on Wednesday and new employment figures on Thursday.
In July, the Index of United States Producer Prices (PPI) showed a fall in its year-on-year rate, falling to 2.2%, compared to 2.7% recorded in June, which was revised upwards by one tenthaccording to data released today by the Bureau of Labor Statistics. This result exceeded market expectationswhich had forecast a smaller decline of 2.3%.
On a monthly basis, the PPI rose 0.1% in July, in line with expectations and marking a slowdown from the 0.2% increase seen in June.
The Bureau of Labor Statistics attributes the increase in the final demand index in July primarily to prices for final demand goods, which rose 0.6%. In contrast, the final demand services index experienced a decrease of 0.2%.
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Excluding food, energy and commercial services, the final demand index rose 0.3% in July, accelerating from 0.1% in the previous month. This figure brought the interannual rate to 3.3%. Among final goods, the monthly increase of 0.6% represented the largest advance since February’s 1.1%, with almost 60% of this increase attributed to the energy index, which rose 1.9%. Food prices also rose 0.6%.
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As for services, the 0.2% drop is the largest recorded since March 2023 and was driven by a 1.3% decline in the commercial services index. On the other hand, prices for final demand services, excluding trade, transport and storage, increased by 0.3%.
In the intermediate demand category, prices of processed goods rose 0.7% in July, while unprocessed goods rose 3.6%, and prices of services increased 0.3%.
Market participants position themselves ahead of key US economic news, such as the one released on Tuesday; the Consumer Price Index report (CPI) to be released tomorrow, and on Thursday, data on Core Retail Sales and unemployment news will be released.
Source: Ambito
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