Washington, D.C. (PPD) — The Producer Price Index (PPI) for final demand rose a seasonally-adjusted 0.6% in July, doubling the forecast and the largest gain since October 2018. That large gain recovers all of the -0.2% and -0.4% readings in June and May, respectively.
Forecasts for the PPI ranged from a low of 0.2% to a high of 0.6%. The consensus forecast was 0.3%. The gain was led by a 0.5-percent rise in prices for final demand services. The index for final demand goods also moved higher, increasing 0.8%.
The PPI for final demand less foods and energy came in at 0.5%. The forecasts ranged from a low of 0.0% to a high of 0.2%. The consensus forecast was flat at 0.0%.
