US producer inflation annually rises 2.6% in June for largest advance since March 2023

By Ovunc Kutlu

ISTANBUL (AA) - Producer inflation in the US annually rose 2.6% in June, according to data released Friday.

This is the largest annual advance since the figure moved up 2.7% for the 12 months ended March 2023, the Labor Department's Bureau of Labor Statistics said in a statement.

The producer price index (PPI), which measures changes in the prices of goods and services from a producer's perspective, came higher than market estimates of a 2.3% gain.

The figure for May, meanwhile, was revised up from an increase of 2.2% to a rise of 2.4%.

On a monthly basis, PPI rose 0.2% in June, and also came above the market expectation of a 0.1% increase.

The monthly figure for May was revised up from a decline of 0.2% to no change.

"The June rise in the index for final demand can be traced to a 0.6-percent increase in prices for final demand services," said the statement.

"Nearly all the June increase is attributable to a 1.9-percent jump in margins for final demand trade services," it added.

Core PPI, which excludes volatile food, energy and trade prices, showed no monthly change in June, and registered a 3.1% year-on-year increase.

The monthly core PPI figure for May was also revised up to a gain of 0.2% from no change, while the annual figure saw an upward revision to 3.3% from 3.2%.