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U.S. Producer Prices Inch Up 0.1% Amid Higher Service Prices


A report released by the Labor Department on Thursday showed a modest increase in U.S. producer prices in the month of June.

The Labor Department said its producer price index for final demand inched up by 0.1 percent in June after coming in flat in May. Economists had expected prices to remain unchanged.

The uptick in producer prices reflected continued growth in prices for final demand services, which rose by 0.2 percent in June after a 0.3 percent increase in May.

The Labor Department said most of the increase can be attributed to a 0.3 percent advance by the index for final demand services less trade, transportation, and warehousing.

Prices for transportation and warehousing services edged up by 0.1 percent, while prices for trade services dipped by 0.2 percent.

The report also showed a modest decrease in energy prices, which slipped by 0.5 percent in June after plunging by 3.0 percent in May.

On the other hand, prices for food climbed by 0.6 percent in June following a 0.2 percent drop in the previous month.

Excluding food and energy prices, core producer prices crept up by 0.1 percent in June after climbing by 0.3 percent in May. Core prices had been expected to rise by 0.2 percent.

Compared to the same month a year ago, producer prices were up by 2.0 percent in June, reflecting a slowdown compared to the 2.4 percent increase in May.

The annual rate of growth in core producer prices also slowed to 1.9 percent in June from 2.1 percent in the previous month.

On Friday, the Labor Department is scheduled to release its more closely watched report on consumer prices in the month of June.

Consumer prices are expected to inch up by 0.1 percent, while core consumer prices are expected to rise by 0.2 percent.

by RTTNews Staff Writer

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