Producer Price Index rises significantly

Note: This section contains information in English only.
Source: Dukascopy Bank SA
In July, the U.S. Producer Price Index (PPI) for final demand rose by 0.9%, the biggest monthly increase this year. That's a sharp jump compared to June, when prices were flat, and May, which saw a 0.4% rise. Over the past year, the index increased by 3.3%, the highest 12-month gain since February.



The main driver of July's rise was higher prices for services, which jumped 1.1%—the largest increase since March 2022. Over half of that came from a 2.0% rise in trade service margins (what retailers and wholesalers earn). Other notable increases were in services like portfolio management, investment advice, traveler accommodations, and trucking. Some prices, like hospital outpatient care and furniture retailing, declined. Prices for goods also rose 0.7% in July, the biggest increase since January. This was mostly due to food prices, which climbed 1.4%, driven in part by a 38.9% spike in vegetable prices. Meat, fuel, and eggs also got more expensive, while gasoline and some poultry products fell in price. Excluding food, energy, and trade services, core PPI rose 0.6% in July—the largest such gain since March 2022—and increased 2.8% over the past year.

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