US producer prices beat expectations in July

[WASHINGTON] US producer prices rebounded more than expected in July, but the overall trend in producer inflation remained subdued amid signs the economy's recovery from the Covid-19 recession was faltering.

The Labor Department said on Tuesday its producer price index for final demand increased 0.6 per cent last month after falling 0.2 per cent in June. In the 12 months through July, the PPI dropped 0.4 per cent after declining 0.8 per cent in June.

Economists polled by Reuters had forecast the PPI rising 0.3 per cent in July and decreasing 0.7 per cent on a year-on-year basis. 

REUTERS