Producer prices rose by 1.1 percent in June compared to the previous month.
(Photo: Reuters)
Washington Surprisingly, producer prices in the USA continue to rise and thus indicate persistently high inflation in the country. In June, producer prices rose by 11.3 percent compared to the same month last year, as the Ministry of Labor announced on Thursday. The increase was only just below the record value of March – at that time 11.6 percent was achieved.
In May there was a revised increase of 10.9 percent. Compared to the previous month, producer prices rose by 1.1 percent in June and thus more than experts had expected, who had expected 0.8 percent.
In the statistics, the prices are listed ex works, i.e. before the products are further processed or sold. From this, early indications of the development of consumer prices can be derived. In June, US inflation rose to its highest level since November 1981, at 9.1 percent. Material bottlenecks and increased energy costs, also as a result of the Ukraine war, are causing strong price pressure.
This could prompt the Federal Reserve to take another big interest rate hike at the end of the month. Monetary watchdog Raphael Bostic does not rule out an increase of a full percentage point. Numerous US central bankers have signaled their approval of a further increase of 0.75 percentage points in the past few days. The key interest rate is currently in a range of 1.50 to 1.75 percent.
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