Producer Prices: There Was No Inflation At All In June

[Hol]

The producer price index was unchanged in June compared with the previous month, the Department of Labor said Wednesday. Economists had expected a rise of 0.2 percent after a 0.3 percent rise in May and a 0.3 percent decline in April.

Compared with a year ago, the producer price index (PPI) is up 2.3 percent, a significantly slower rate of inflation than the 2.5 percent forecast and the 2.6 percent reported in May.

PPI for final demand measures the prices paid to American businesses for goods and services. It includes sales to consumers, households, businesses, and foreign purchasers, a broader array of customers than is measured by the consumer price index. Although it is sometimes referred to as a “wholesale” price index, it is not an index of wholesale prices.

Goods prices rose by 0.3 percent in June but these increases were offset by a 0.1 percetn decline in the much larger services sector.

Core PPI, which excludes food and energy prices, was also flat for the month. Compared with a year ago, core PPI is up 2.6 percent, a significant slowdown in inflation from the prior month’s 3.0 percent annual increase.

Producer Prices: There Was No Inflation At All In June

Prices paid to American businesses for goods and services held steady in June, defying predictions that tariffs would create inflationary presssures in the U.S. economy. | Economy

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[Tall Timbers]

I've noticed some recent increases in some produce and beef. Of course, the govmint numbers don't account for everything. Lower inflation is most welcome.

 

[Baby Yoda]

Eggs are certainly lower in price now and have not seen any further increases in the grocery store.

 

[mattfivefour]

Eggs here are definitely lower at 2.99, as opposed to 5.99. But that is still significantly higher than before when eggs were always running between .99 and 1.49.

 

[Margery]

I'll give everyone a quick and easy way to figure out if inflation is happening and by how much.

It's a classic. I won't do it for you, this is something to look up on your own.

It's the price of gold. It has gone up and down over the years, but the reason it's a good indicator is the true value of gold is almost a constant. The price in our different currencies is what fluctuates. Because govt can print more money as it sees fit.

What drives that is inflation or deflation of the worth of the currency measured up against gold.

Consumer price indexes are almost meaningless next to that. The price of butter, cheese, a loaf of bread varies according to supply and demand.

But not gold.

I did a quick lookup across several exchanges. You can see what I saw for yourself.

 

[Andiamo]

They always write these things as if I’m supposed to think that everything is so great.
These claims never take shrinkflation into account.
And the fact that they are making everything so cheap and flimsy now. Making us have to buy things much more often. (Average fridge lasts 2-5 years now)
So I don’t care about their claims about “inflation.” Whatever.

 

[Tall Timbers]

The McDonalds where I'm at raised their prices on most items by 10-15% today. Of course, it's July now.

 

[Baby Yoda]

To clarify my comment, prices here are still at least 30% higher than a few years ago, just not still rising as dramatically now.