Over the past 12 months, core prices are up a modest 0.6 per cent. Both measurements show inflation remaining in check.
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The U.S. Department of Labor releases the monthly Producer Price Index (PPI) figures for July at 8:30 a.m. ET, with consensus calling for a rise of 0.1 percent, according to Bloomberg News.
Prices charged by producers rose more slowly in July, reflecting declines in both food and energy. Core prices had been expected to tick up by 0.1%.
Wholesale prices excluding these two components rose 0.3 percent for a second month, compared with the 0.1 percent gain seen by the median forecast of economists surveyed. June’s 0.4 increase was the largest monthly gain since last May, although the year-over-year change is still firmly in negative territory at -1.1 percent.
The increase last month in the index excluding food and fuel was paced by a 0.4 percent advance in the cost of services.
A strong dollar and weaker oil prices are keeping a lid on inflation, which has some economists believing that the Federal Reserve will be hesitant to raise interest rates next month.
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In a preview of the data to clients, BNP Paribas economists wrote: “Prices of eggs and pharmaceutical preparations surged in June and likely retreated a bit in July”. Wholesale chicken egg prices fell 24.2 per cent in July after soaring a record 84.5 per cent in June.
