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U.S. producer prices rise by most since November 2007
Energy prices climb by 6.6% in June, fueling headline jump of 1.8%
By Robert Schroeder, MarketWatch
WASHINGTON (MarketWatch) -- U.S. producer prices rose 1.8% in June, eclipsing economists' expectations and climbing by the most since November 2007, the Labor Department reported Tuesday.
Excluding volatile food and energy-price inputs, producer prices were up by just 0.5% last month.
Still, this so-called core rate also outstripped economists' expectations. Analysts surveyed by MarketWatch had the adjusted PPI rate for June to rise by 0.1%.
Economists had pegged overall producer prices, which track inflation at the wholesale level, to have risen by 1.2% in June, from 0.2% in May.
U.S. stocks were up marginally after the PPI and retail-sales data on Tuesday morning. Retail sales had their best gain in five months in June, though core sales were down for the fourth straight month. See full story.
Economists and investors have kept a sharp eye out for signs of inflation creeping into the U.S. economy, in light of the massive stimulus measures adopted by Washington several months ago.
Treasury prices declined further Tuesday, sending yields up, after the economic data reports. See Bond Report.
Energy prices soared at the producer level in June, rising by 6.6%. In May, they were up 2.9%, on the heels of having fallen by 0.1% in April.
Prices for gasoline, home heating oil and liquefied-petroleum gas all spiked in June, the data showed.
Food prices rose by 1.1% in June, a reversal after falling by 1.6% in May.
In spite of the overall June increase, producer prices are off 4.6% over the past 12 months.
Over the past year, however, core PPI prices are up 3.3%.
In June, prices for intermediate goods rose 1.9%.
Further back in the production pipeline, prices for crude goods climbed by 4.6%.
Robert Schroeder is a reporter for MarketWatch in Washington.
Energy prices climb by 6.6% in June, fueling headline jump of 1.8%
By Robert Schroeder, MarketWatch
WASHINGTON (MarketWatch) -- U.S. producer prices rose 1.8% in June, eclipsing economists' expectations and climbing by the most since November 2007, the Labor Department reported Tuesday.
Excluding volatile food and energy-price inputs, producer prices were up by just 0.5% last month.
Still, this so-called core rate also outstripped economists' expectations. Analysts surveyed by MarketWatch had the adjusted PPI rate for June to rise by 0.1%.
Economists had pegged overall producer prices, which track inflation at the wholesale level, to have risen by 1.2% in June, from 0.2% in May.
U.S. stocks were up marginally after the PPI and retail-sales data on Tuesday morning. Retail sales had their best gain in five months in June, though core sales were down for the fourth straight month. See full story.
Economists and investors have kept a sharp eye out for signs of inflation creeping into the U.S. economy, in light of the massive stimulus measures adopted by Washington several months ago.
Treasury prices declined further Tuesday, sending yields up, after the economic data reports. See Bond Report.
Energy prices soared at the producer level in June, rising by 6.6%. In May, they were up 2.9%, on the heels of having fallen by 0.1% in April.
Prices for gasoline, home heating oil and liquefied-petroleum gas all spiked in June, the data showed.
Food prices rose by 1.1% in June, a reversal after falling by 1.6% in May.
In spite of the overall June increase, producer prices are off 4.6% over the past 12 months.
Over the past year, however, core PPI prices are up 3.3%.
In June, prices for intermediate goods rose 1.9%.
Further back in the production pipeline, prices for crude goods climbed by 4.6%.
Robert Schroeder is a reporter for MarketWatch in Washington.