"[…] we expect to see further sizeable increases in PPI finished food over the second half of the year"
- Paul Ashworth, Chief U.S. Economist at Capital Economics
Wholesale prices in the US surprisingly increased in June, indicating growth of food costs.
According to the Labor Department, the Producer Price Index unexpectedly climbed 0.1% in June, which was well ahead of economists' expectations of a 0.5% contraction.
"With grain prices soaring in recent weeks we expect to see further sizeable increases in PPI finished food over the second half of the year," said Paul Ashworth, Chief U.S. Economist at Capital Economics.
The core PPI rose in line with economists' forecast, increasing by 0.2% in June and 2.6% year-on-year.
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