In the United States, a slowdown in the dynamic of wholesale inflation was recorded in July, which was a relatively expected result.
It is worth noting that in June, the abovementioned indicator showed an unexpected increase.
The Producer Price Index, a measurement of average price changes seen by producers and manufacturers, was fixed at 2.2% for the 12 months ended July. The Bureau of Labor Statistics published the relevant information on Tuesday, August 13. In June, the growth rate of the mentioned indicator was 2.7%.
On a monthly basis, the specified prices increased by 0.1%. In June, the growth was 0.2%. FactSet’s preliminary estimate predicted that on a monthly basis, prices would increase by 0.2% in July. The corresponding forecast also contained expectations that the growth rate would be 2.3% year-on-year.
The Consumer Price Index is a potential driver of accelerating retail-level inflation in the United States in the coming months. On Wednesday, August 14, the Bureau of Labor Statistics will release the relevant data for July. This information will become a kind of indicator of the extent to which price changes impact consumers in the context of the financial aspect of their daily lives.
Data from the Bureau of Labor Statistics indicates that the overall Producer Price Index was attributed to a 0.6% jump in goods prices. Services prices fell 0.2% due mainly to a correction in the volatile category of trading services, which decreased by 1.3% in July after rising by 1.4% in June.
Chris Larkin, managing director of trading and investing for E*Trade, commenting on the data on the dynamic of the Producer Price Index, said that markets seeking stability received more evidence of cooling inflation.
All major indexes in the United States opened higher to start early Tuesday.
Economists surveyed by the media expect that data on the dynamic of the Consumer Price Index will be published on Wednesday, which will indicate that inflation in the United States continues to be on a slowdown trajectory. The corresponding point of view is held, for example, by Lydia Boussour, senior economist at EY-Parthenon.
As we have reported earlier, US July Federal Deficit Demonstrates Growth.
Serhii Mikhailov
Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.
