Producer Price Index (PPI)

June 2024 PPI came in higher than estimates

Based on PPI and CPI yesterday, there are now estimates of Core PCE to rise only by about 0.1%.

  • PPI 0.2% MoM, Exp. 0.1% vs -0.03% in May
  • PPI 2.6% YoY, Exp. 2.4% vs 2.3% in May
  • PPI Core 0.4% MoM, Exp. 0.2% vs 0.3% in May
  • PPI Core 3.0% YoY, Exp. 2.5% vs 2.6% in May
  • Prices for final demand services rose 0.6 percent in June after moving up
    0.3 percent in May. Nearly all the June increase is attributable to a 1.9-percent jump in margins for final demand trade services
  • Prices for final demand goods moved down 0.5 percent in June after falling
    0.8 percent in May. Most of the June decrease is attributable to a 2.6-percent drop in the index for final demand energy.

PPI was disappointing but is always highly volatile. The Y/Y and 6M trend have been slowly increasing.



https://www.bls.gov/news.release/ppi.nr0.htm

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