Wholesale Prices in U.S. Increase in June on Services CostsBy
The gain in U.S. wholesale prices reflected higher food and services costs, signaling modest inflation, a Labor Department report showed Thursday in Washington.
Highlights of Producer Prices (June)
Almost 80 percent of the increase in wholesale prices was due to a 0.2 percent gain in services as goods costs edged up 0.1 percent. A big factor behind the pickup in services costs was a 4 percent rise in prices for securities brokerage and investment advice.
Otherwise, price pressures in the production pipeline remain contained, keeping broader inflation below the Federal Reserve’s goal and helping explain why policy makers plan to raise interest rates only gradually.
The PPI excluding food, energy, and trade services -- a measure some economists prefer because it strips out the most volatile components -- increased 2 percent from June 2016, also indicating inflation is taking time to pick up.
- Excluding the volatile categories of food, energy, and trade services, producer costs rose 0.2 percent from the previous month following a 0.1 percent decline
- Energy prices fell 0.5 percent from the prior month; food costs rose 0.6 percent
- Goods inflation crept higher after falling 0.5 percent in May; services prices also climbed after a 0.3 percent advance
- Profit margins at trade services including retailers and wholesalers were down 0.2 percent
— With assistance by Patricia Laya, and Kristy Scheuble