The Bureau of Labor Statistics reported that producer prices were 0.2 percent higher in July. Economists expected no change in prices. Producer prices are 7.2 percent higher than one year ago.
Prices for crude materials excluding foodstuffs and feedstuffs declined 1.4 percent in July and have declined by 4.4 percent year-to-date. I expect inflation to moderate as the lower prices for crude materials move downstream in the value chain in the coming months.
|Producer Price Index|
|PPI – Month-to-Month||-0.4%||0.2%|
|PPI – Year-to-Year||7.0%||7.2%|