Pro­ducer price in­dex up a bit in June

Northwest Arkansas Democrat-Gazette - - BUSINESS & FARM - — The As­so­ci­ated Press

WASH­ING­TON — In­fla­tion at the whole­sale level re­mained muted in June.

The La­bor Depart­ment said its pro­ducer price in­dex, which mea­sures prices be­fore they reach con­sumers, rose 0.1 per­cent last month after be­ing flat in May. The in­dex was up 2 per­cent in June from a year ear­lier.

Most of the June in­crease came from ris­ing prices for ser­vices, in­clud­ing a 4 per­cent jump in the cost of bro­ker­age and other in­vest­ment ser­vices.

Whole­sale en­ergy prices fell 0.5 per­cent, in­clud­ing a 1.1 per­cent drop in gaso­line prices. The price of re­pair­ing and main­tain­ing cars and trucks fell 1 per­cent, the most in more than two years.

Ex­clud­ing volatile food and en­ergy prices, whole­sale in­fla­tion was up 0.1 per­cent last month from May and 1.9 per­cent from a year ear­lier.

The Fed­eral Re­serve has in­creased the short-term in­ter­est rate it con­trols three times since De­cem­ber. But its fa­vored mea­sure of in­fla­tion, con­tained in a sep­a­rate Com­merce Depart­ment re­port on con­sumer spend­ing and per­sonal in­come, was run­ning at an­nual rate of just 1.4 per­cent in April.

The La­bor Depart­ment will re­lease its re­port on June con­sumer prices to­day.

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