US producer prices rise less than expected in July
The producer price index for final demand gained 0.1 per cent last month after rising by an unrevised 0.2 per cent in June
US PRODUCER prices increased less than expected in July as a rise in the cost of goods was tempered by cheaper services, indicating that inflation continued to moderate.
The producer price index for final demand gained 0.1 per cent last month after rising by an unrevised 0.2 per cent in June, the Labor Department’s Bureau of Labor Statistics said on Tuesday (Aug 13). Economists polled by Reuters had forecast the PPI gaining 0.2 per cent.
In the 12 months through July, the PPI increased 2.2 per cent after climbing 2.7 per cent in June.
Slowing inflation and a cooling labour market have led financial markets to anticipate that the Federal Reserve will start its easing cycle in September. With the US central bank now increasingly concerned about labour market weakness, after the unemployment rate surged to near a three-year high of 4.3 per cent in July, a rate cut of 50 basis points cannot be ruled out.
The Fed has maintained its benchmark overnight interest rate in the current 5.25-5.50 per cent range for a year, having raised it by 525 basis points in 2022 and 2023. REUTERS
Share with us your feedback on BT's products and services
