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On average, bank economists had expected a slightly higher rate of 0.4 percent. It was 0.9 percent in the previous month. Producer prices rose at times in double digits over the past year due to the consequences of Russia’s war against Ukraine. Since then, inflation has slowed.
Producer prices, excluding energy and food, increased significantly by 2.4 percent compared to June 2022. This so-called core rate is less sensitive to fluctuations and therefore provides a more pure picture of price developments, according to economists.
Producer prices affect consumer prices, on which the US Federal Reserve bases its monetary policy. Overall inflation fell significantly in June, according to figures on Wednesday.
It is unclear how the US Federal Reserve will react to this development. So far, another rate hike is expected for the next meeting at the end of July. In June, the Fed stopped raising interest rates for the first time in more than a year.
(SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
