Data: U.S Bureau of Labor Statistics; Chart: Axios Visuals
U.S. producer prices rose by the most since October 2018 last month, following a 0.2% decline in June.
Details: U.S. PPI for final demand, a measurement of prices paid by businesses, increased 0.6% last month, driven by a surge in portfolio management fees and the rising cost of gasoline.
- However, year over year through July PPI dropped 0.4% after falling 0.8% in the 12 months through June.
- The index was growing at a yearly pace of around 2% as recently as January.
Why it matters: “Fed officials will see no reason to be on high alert for inflation pressures after today’s modest rebound in producer prices and there is little reason for them to temper their highly stimulative monetary policy,” Chris Rupkey, chief economist at MUFG, told Reuters.
