Wholesale inflation fell 0.5% in July, in another sign that price increases are slowing

[mahatmakanejeeves]

Source: CNBC

ECONOMY

Wholesale inflation fell 0.5% in July, in another sign that price increases are slowing

PUBLISHED THU, AUG 11 2022 * 8:39 AM EDT * UPDATED 10 MIN AGO

Jeff Cox
@JEFF.COX.7528
https://twitter.com/JEFF.COX.7528
@JEFFCOXCNBCCOM
https://twitter.com/JEFFCOXCNBCCOM

Wholesale prices fell in July for the first time in two years as a plunge in energy prices slowed the pace of inflation, the Bureau of Labor Statistics reported Thursday.

The producer price index, which gauges the prices received for final demand products, fell 0.5% from June, the first month-over-month decrease since April 2020, the month after Covid-19 was declared a pandemic. Economists surveyed by Dow Jones had been expecting an increase of 0.2%.

On an annual basis, the index rose 9.8%, the lowest rate since October 2021. That compares to an 11.2% increase in June and the record 11.6% gain in March.

Most of the decline came from energy, which declined 9% at the wholesale level.

This is breaking news. Please check back here for updates.

Read more: https://www.cnbc.com/2022/08/11/producer-price-index-july-2022-.html

[mahatmakanejeeves]

1. From the source, the U.S. Bureau of Labor Statistics:

PPI for final demand declines 0.5% in July; goods fall 1.8%, services increase 0.1%

The Producer Price Index for final demand fell 0.5 percent in July. Prices for final demand goods declined 1.8 percent, and the index for final demand services advanced 0.1 percent. Final demand prices moved up 9.8 percent for the 12 months ended in July.

Economic News Release USDL 22-1627

Producer Price Index News Release summary
Transmission of material in this release is embargoed until 8:30 a.m. (ET), Thursday, August 11, 2022

Technical information: [phone] * [e-mail] * www.bls.gov/ppi
Media contact: [phone] * [e-mail]


PRODUCER PRICE INDEXES - JULY 2022


The Producer Price Index for final demand fell 0.5 percent in July, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This decline followed advances of 1.0 percent in June and 0.8 percent in May. (See table A.) On an unadjusted basis, final demand prices moved up 9.8 percent for the 12 months ended in July.

In July, the decrease in the index for final demand is attributable to a 1.8-percent decline in prices for final demand goods. In contrast, the index for final demand services advanced 0.1 percent.

Prices for final demand less foods, energy, and trade services moved up 0.2 percent in July following a 0.3-percent rise in June. For the 12 months ended in July, the index for final demand less foods, energy, and trade services increased 5.8 percent.

Final Demand

Final demand goods: The index for final demand goods fell 1.8 percent in July, the largest decline since moving down 2.7 percent in April 2020. The July decrease can be traced to a 9.0-percent drop in prices for final demand energy. Conversely, the indexes for final demand foods and for final demand goods less foods and energy rose 1.0 percent and 0.2 percent, respectively.

Product detail: Eighty percent of the July decline in the index for final demand goods is attributable to gasoline prices, which fell 16.7 percent. The indexes for diesel fuel, gas fuels, oilseeds, iron and steel scrap, and grains also moved lower. In contrast, prices for chicken eggs jumped 43.1 percent. The indexes for industrial chemicals and for electric power also increased. (See table 2.)

Final demand services: The index for final demand services inched up 0.1 percent in July, the third consecutive increase. Leading the July advance, margins for final demand trade services rose 0.3 percent. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand transportation and warehousing services moved up 0.4 percent. Conversely, final demand services less trade, transportation, and warehousing decreased 0.1 percent.

Product detail: Leading the July increase in prices for final demand services, margins for fuels and lubricants retailing rose 12.3 percent. The indexes for services related to securities brokerage and dealing (partial), hospital outpatient care, automobiles and automobile parts retailing, and transportation of passengers (partial) also moved higher. In contrast, prices for portfolio management declined 7.9 percent. The indexes for securities brokerage, dealing, and investment advice; food and alcohol retailing; and long-distance motor carrying also fell.

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________________
The Producer Price Index for August 2022 is scheduled to be released on Wednesday, September 14, 2022, at 8:30 a.m. (ET).

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[Yavin4]

2. Excellent.

Inflation may be an old story by November.

[winstars]

3. Wait, I keep hearing about the coming........... HYPER-INFLATION!!! BE SCARED!!! LOL

[Ollie Garkie]

4. As far as

What I can recall in my lifetime the last couple years has seemed to border on hyperinflation. Housing groceries gas absolutely ridiculous the past couple years. You must be pretty affluent. To blame it on Biden though is ridiculous as well, but that's what the MAGATs are doing. It should be taken into account come Novber.