Updated: 10-Jul-20 09:29 ET

June PPI

Updated: 10-Jul-20 09:29 ET

Highlights

• The Producer Price Index for final demand, led by a 0.3% decline in prices for final demand services, decreased 0.2% m/m (Briefing.com consensus +0.4%) following a 0.4% increase in May.
• Excluding food and energy, the index for final demand decreased 0.3% m/m (Briefing.com consensus +0.1%) after declining 0.1% in May.
• On a year-over-year basis, the index for final demand is down 0.8% while core PPI is up just 0.1%.

Key Factors

• The drop in the index for final demand services is owed principally to margins for final demand trade services, which dropped 1.8%.
• The index for final demand goods rose 0.2%, helped by a 7.7% increase in the index for final demand energy.
• The index for processed goods for intermediate demand increased 0.9%.
• The index for unprocessed goods for intermediate demand jumped 3.1%.

Big Picture

• The key takeaway from the report is that there are few, if any, inflation pressures at the producer level due to generally weak demand.

Category	JUN	MAY	APR	MAR	FEB
Final Demand	-0.2%	0.4%	-1.3%	-0.2%	-0.6%
Core (excluding ...)
Food and Energy	-0.3%	-0.1%	-0.3%	0.2%	-0.3%
Food, Energy, and Trade	0.3%	0.1%	-0.9%	-0.2%	-0.1%
Final Demand Goods
Total	0.2%	1.6%	-3.3%	-1.0%	-0.9%
Energy	7.7%	4.5%	-19.0%	-6.7%	-3.6%
Finished Goods	0.0%	2.3%	-3.5%	-1.1%	-0.9%
Final Demand Services
Total	-0.3%	-0.2%	-0.2%	0.2%	-0.3%
Trade	-1.8%	-0.8%	1.6%	1.4%	-0.7%
Intermediate Demand
Processed	0.9%	0.1%	-3.7%	-1.1%	-0.9%
Unprocessed	3.1%	8.9%	-13.7%	-8.0%	-7.7%
Services	0.2%	-0.4%	-1.6%	-0.1%	-0.1%