Updated: 14-Jul-21 09:20 ET
| June PPI |
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| Updated: 14-Jul-21 09:20 ET |
Highlights
- The Producer Price Index for final demand increased 1.0% month-over-month (Briefing.com consensus +0.6%), as did the Producer Price Index for final demand, less food and energy (Briefing.com consensus +0.5%).
- That left the year-over-year growth rate at 7.3% for total PPI -- the largest since November 2010 -- versus 6.6% in May. The year-over-year growth rate for core PPI was 5.6%, up from 5.3% in May.
Key Factors
- The report indicated that nearly 60% of the advance in the final demand index was owed to a 0.8% increase in prices for final demand services.
- The index for final demand goods rose 1.2%.
- The index for processed goods for intermediate demand jumped 1.9%.
- The index for unprocessed goods for intermediate demand increased 2.6%.
Big Picture
- The key takeaway from the report is that producers are encountering higher prices that will create profit margin pressures if they are not offset with pricing actions.
| Category | JUN | MAY | APR | MAR | FEB |
| Final Demand | 1.0% | 0.8% | 0.6% | 1.0% | 0.5% |
| Core (excluding ...) | |||||
| Food and Energy | 1.0% | 0.7% | 0.7% | 0.7% | 0.2% |
| Food, Energy, and Trade | 0.5% | 0.7% | 0.7% | 0.6% | 0.2% |
| Final Demand Goods | |||||
| Total | 1.2% | 1.5% | 0.6% | 1.7% | 1.4% |
| Energy | 2.1% | 2.2% | -2.4% | 5.9% | 6.0% |
| Finished Goods | 1.2% | 1.1% | 0.3% | 1.3% | 1.5% |
| Final Demand Services | |||||
| Total | 0.8% | 0.6% | 0.6% | 0.7% | 0.1% |
| Trade | 2.1% | 0.7% | 0.5% | 1.0% | 0.1% |
| Intermediate Demand | |||||
| Processed | 1.9% | 2.8% | 1.6% | 4.0% | 2.7% |
| Unprocessed | 2.6% | 8.4% | -3.8% | 9.3% | 4.3% |
| Services | 1.1% | 0.8% | 0.8% | 0.4% | 0.7% |