+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Producer prices rise more than forecast

Jul 14, 2016, 18:00 IST

A Costco customer carries a bag of rice to his cart at a Costco store April 23, 2008 in San Francisco, California. A worldwide shortage of rice has prompted U.S. big-box retailers to start limiting the number of bags of rice that customers can buy as people try to stockpile the commodity as prices continue to skyrocket.Justin Sullivan/Getty

The producer price index (PPI) for final demand rose by 0.5% in June, according to the Labor Department.

Advertisement

The jump in prices was led by the index for final demand services, notably those related to securities brokerage and dealing, which increased 7.7%.

Economists had forecast an increase by 0.3% month-on-month, according to Bloomberg.

Core PPI, which excludes volatile food and energy costs, rose 0.4% month-on-month (0.1% expected.)

Compared to the same time a year ago, PPI for final demand rose 0.3% (0% expected), and 1.3% (1% forecast.)

Advertisement

Producer prices are used as a forward-looking indicator of consumer-price inflation. The idea is that if wholesale prices are rising, retailers would likely pass these costs on to regular buyers.

More to come ...

NOW WATCH: CLINTON: Trump poses a threat to US democracy

Please enable Javascript to watch this video
You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article