Prices received by U.S. businesses for products and services rose more than expected in June, the Labor Department reported on Tuesday.
The Producer Price Index rose 7.3 percent in June from 12 months earlier, the most demand since the 12-month data was first introduced in 2010. Compared to May, the index rose one percent On average, this index rose nearly 0.2 percent per month in the pre-pandemic Trump administration.
Economists expect an increase of 0.6 percent, down from the 0.8 percent first reported for May. On a 12 -month basis, the consensus forecast is for 6.8 percent.
Nearly 60 percent of the June advance in the index could be followed by a 0.8-percent increase in prices for final services demanded. The index for the final requirements is as high as 1.2
percent. Seventy percent of PPI revenue was driven by margins for retail services, up 2.1 percent. (Retail services measure changes in margins received by wholesalers and retailers rather than price changes.)
Twenty per cent rise in June in the service index could be traced to margins for retail of cars and auto parts, which rose 10.5 per cent. READ MORE
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