Producer Prices Increased More Than Expected in USA

Producer Prices Increased More Than Expected in USA. Producer prices in the country increased by 0.6 percent in July compared to the previous month, exceeding expectations. Producer prices in the US rose more than expected. Producer prices were predicted to increase by 0.3 percent, according to the median expectations of economists surveyed by Bloomberg. However, with prices increasing by 0.6 percent, the fastest increase was recorded on a monthly basis since October 2018. This increase in producer prices was supported by the rise in energy prices. The expectations of 59 economists who took part in Bloomberg's survey were that there would be an increase of 0.1 percent to 0.6 percent. Producer prices decreased by 0.4 percent in the said period compared to the same period of the previous year. This data was predicted to decrease 0.7 percent. Energy prices in the US rose 5.3 percent in July, and this increase includes the 10.1 percent rise in gasoline prices. Food prices fell 0.3 percent during the period in question. Core producer prices, from which food and energy prices are excluded, are expected to increase by 0.1 percent on a monthly basis, but increased by 0.5 percent. While this data is expected to remain unchanged on an annual basis, it rose 0.3 percent. Core producer prices increased in July for the first time in the last six months. This situation is considered as a sign that the economy is gaining stability.