Inflation at the wholesale level slowed down last month, thanks to a significant decrease in energy prices, according to data released by the Bureau of Labor Statistics.
Monthly and Annual Changes
On an annual basis, the Producer Price Index, which measures the prices businesses receive for their goods and services, slowed to a 5.5% pace in June, compared to a revised 6% in May. On a monthly basis, prices fell 0.3% in June versus a 0.6% increase in the prior month.
Excluding volatile food and energy prices, core PPI slowed to a pace of 4.6% in June from the 4.9% pace seen in May. While the decline in energy prices provided some relief to businesses last month, this relief could be short-lived due to the recent conflict in the Middle East.
Federal Reserve Chairman Kevin Warsh expressed caution when interpreting the recent Consumer Price Index report, stating that it’s just one data point and not indicative of a broader trend.
Original reporting: KRDO (Colorado Springs metro) — read the source article.
