UPDATE - US producer prices rise 0.1% monthly, gain 2.2% annually in July

UPDATES WITH ADDITIONAL FIGURES: REVISES DECK

By Ovunc Kutlu

ISTANBUL (AA) - Producer inflation in the US rose 0.1% monthly in July, coming below expectations, according to data released Tuesday.

The producer price index (PPI), which measures changes in the prices of goods and services from a producer's perspective, was estimated to show a gain of 0.2% in July.

The figure for June, meanwhile, was unrevised for an increase of 0.2%, the Labor Department's Bureau of Labor Statistics said in a statement.

On an annual basis, PPI rose 2.2% in July, and also came below market expectations of a 2.3% increase.

The monthly figure for June was revised up from a gain of 2.6% to an increase of 2.7%.

"Prices for final demand goods rose 0.6 percent in July, the largest advance since a 1.1-percent jump in February," said the statement.

"Nearly 60 percent of the broad-based increase in July can be traced to the index for final demand energy, which moved up 1.9 percent," it added.

Core PPI, which excludes volatile food, energy and trade prices, showed a 0.3% monthly climb in July, and registered a 3.3% year-on-year increase.

The monthly core PPI figure for June was also revised upwards to a gain of 0.1% from no change, while the annual figure saw an upward revision to 3.2% from 3.1%.

- Gas prices loom large

The Labor Department said a quarter of the July increase in the index for final demand goods is attributable to a 2.8% rise in gasoline prices.

Prices for electric power, on the other hand, fell 1.1% in July, it added.

The index for commercial electric power dropped 1.2%, according to agency figures.

Prices for final demand services, meanwhile, fell 0.2% in July – the largest monthly decrease since a 0.2% decline in March 2023.

"The July decline can be traced to the index for final demand trade services, which dropped 1.3 percent," said the statement.

"Leading the July decline in prices for final demand services, margins for machinery and vehicle wholesaling decreased 4.1 percent," it added.