Regarding June in the USA Producer Price Index (PPI)data was announced. Accordingly, PPI increased by 0.2% on a monthly basis in June, while the increase was 2.6% on an annual basis. Expectations were that producer prices would increase by 0.1% on a monthly basis and 2.3% on an annual basis in June.
- Annual PPI reached the highest level since March 2023.
Core PPI, which excludes food and energy prices, increased by 0.4% monthly in June, and increased by 3% annually compared to the same period last year. Expectations had predicted a 0.2% monthly and 2.5% annual increase for core PPI. PPI data, which was announced as a 0.2% decrease in May, was revised to 0%.
What is the importance of PPI data?The PPI measures the prices of inputs used in production, providing important clues about final product prices and general inflation trends. Economic actors, especially the US Federal Reserve (Fed), closely follow inflation indicators such as the PPI.
