Wholesale prices were flat in July, below expectations for 0.2% increase
- On Wednesday, the Bureau of Labor Statistics reported wholesale prices remained flat in July, falling below Dow Jones consensus expectations and providing an encouraging sign for inflation.
- At its July meeting, the Federal Open Market Committee voted 9-3 to keep the benchmark rate at 3.5% to 3.75%, with three officials including Dallas Fed Lorie Logan dissenting in favor of a hike.
- Headline producer prices increased 4.7% year-over-year while the core figure rose 4.2%, leaving inflation above the Federal Reserve's 2% target; core producer prices rose 0.2% in July.
- Figures from the CME Group's Fed Watch tool showed market confidence in a rate hold climbed to 67.9% from 59.4% the previous day, signaling investor expectations shifted sharply.
- Cleveland Federal Reserve president Beth Hammack and Fed President Neel Kashkari argue additional policy action may be necessary, with Hammack claiming a "potential series of small policy moves would be better than waiting.
49 Articles
49 Articles
US wholesale inflation slows to 4.7% in July: What comes next for Fed, consumers
In July, wholesale prices in the United States exhibited a cooling trend, providing a much-needed breath of fresh air. The decline in energy costs significantly reduced producer price pressures throughout the month. While consumer inflation also saw a slight dip, financial constraints persist for many households. Notably, wholesale inflation excluding food and energy showed improvement year-on-year.
US producer inflation cools in July
US producer inflation cooled in July on a year-on-year basis, government data showed on Thursday, as energy prices dropped from the prior month following an earlier surge due to war in the Middle East. The Producer Price Index (PPI) jumped 4.7 percent from a year ago, down from a 5.5 percent increase in June, said the Department of Labor. PPI was flat on a month-on-month basis. The slowdown came on the back of a fall in energy prices, which dipp…
The Producer Price Index for July, released by the U.S. Bureau of Labor Statistics, stood at 0.0% compared to the previous month, falling short of market expectations. Conversely, the core Producer Price Index, excluding food and energy, rose 0.4%, exceeding expectations. Producer prices serve as a leading indicator for consumer prices and are considered important economic data for gauging future price trends.
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