Economic Buzz: US Producer Prices Drop 0.5% In July

12 Aug 2022 , 09:13 AM

The U.S. Labor Department released a report showing producer prices unexpectedly decreased during the month of July. Producer price index for final demand fell by 0.5 percent in July after surging by a revised 1.0 percent in June. The unexpected decrease in producer producers, which marked the first drop since April 2020, largely reflected a sharp pullback in energy prices. Energy prices plunged by 9.0 percent in July after soaring by 9.4 percent in June, with a 16.7 percent nosedive in gasoline prices leading the downturn. The report also showed the annual rate of producer price growth slowed to 9.8 percent in July from 11.3 percent in June. Meanwhile, the core producer prices crept up by 0.2 percent in July after rising by 0.3 percent in June. The annual rate of core producer price growth also slowed to 5.8 percent in July from 6.4 percent in the previous month. The report also showed prices for services inched up by 0.1 percent in July following a 0.3 percent increase in June. Prices for transportation and warehousing services climbed by 0.4 percent, prices for trade services rose by 0.3 percent and prices for other services ticked up by 0.1 percent.Powered by Commodity Insights