The Producer Price Index (PPI) for goods produced in the U.S. rose 0.8 percent in June from the previous month, showcasing a startling rebound of 2.5 percent from a year before, according to the Bureau of Labor Statistics. The rise is slightly less than the largest yearly rise since March 2012, when the index gained 2.8 percent.
This compares to a 0.5 percent monthly rise in May’s PPI, and a 0.7 decline in April. April’s decline represented the biggest decline in more than three years, indicating less revenue and falling prices for U.S. producers.
If volatile food and energy prices are excluded from the mix, so-called core PPI rose by 0.2 percent monthly. Food and energy prices gave a significant boost to price increases in June, with rising energy prices providing a massive boost. The index measuring gasoline prices rose by a significant 2.9 percent.
Overall PPI figures beat expectations, according to analysts polled by Briefing.com. They expected an uptick of 0.3 percent in June, mostly because of higher food and energy costs.
Analysts said no trends suggest that core prices will deviate from their trajectory of continued growth.
Released by the Bureau of Labor Statistics, the monthly PPI index measures the average price of goods and services, from a seller's perspective, including only U.S. producers. It helps measure real growth in output. The PPI differs from the consumer price index, which measures price changes from a buyer's perspective and helps explain changes in the cost of living.
Nat Rudarakanchana covers commodities and companies for the International Business Times. He is especially interested in precious metals, the food and drink industry, and...