The two seemingly conflicting data points are “a mix that will keep inflation concerns alive, although economists will continue to expect a slowdown in monthly price increases until the end of the year,” Economics economists wrote in a research note to clients.
“Producer price inflation will slow over the next 12 months as supply chain conditions improve and the economy sets in motion its large margin of underutilized production capacity,” PNC senior economist Bill Adams said in comments.
In July alone, producer prices rose by a seasonally adjusted 1%, almost double what analysts had expected. Most of the jump was due to higher prices of services and within these higher margins received by wholesalers and retailers, especially for cars and car parts.
Prices for travel services also rose, including airlines and accommodation, outpatient hospital treatment and machinery wholesale, among others.
But by removing more volatile components, such as food, energy and trade services, inflation still rose sharply in July. In the 12 months ending in July, prices rose 6.1%, the largest increase since the BLS first began calculating this data in August 2014. For the month alone, prices rose 0.9%.
Disclaimers for mcutimes.com
All the information on this website - https://mcutimes.com - is published in good faith and for general information purpose only. mcutimes.com does not make any warranties about the completeness, reliability, and accuracy of this information. Any action you take upon the information you find on this website (mcutimes.com), is strictly at your own risk. mcutimes.com will not be liable for any losses and/or damages in connection with the use of our website.