US producer prices up 0.6% in July, biggest jump since 2018

[mahatmakanejeeves]

US producer prices up 0.6% in July, biggest jump since 2018
Associated Press

PAUL WISEMAN
Associated Press August 11, 2020

WASHINGTON (AP) — U.S. wholesale prices shot up an unexpected 0.6% in July, biggest gain since October 2018, as energy prices moved sharply higher.

The Labor Department said Tuesday that the jump last month in its producer price index — which measures inflation before it reaches consumers — followed a 0.2% drop in June and a 0.4% uptick in May. The increase last month was about twice what economists had expected.

Wholesale energy prices shot up 5.3% in July, including a 10.1% surge in gasoline prices. Food prices slid 0.5%. Excluding the volatile food and energy prices, so-called core producer prices rose 0.5% last month.

Over the past year, producer prices are down 0.4%, and core prices are up 0.3%. Inflation has been held in check by the sharp recession caused by the coronavirus outbreak and the resulting lockdowns and fear that have kept Americans away from restaurants, airplanes and shopping centers. Producer prices for airline services plummeted 7% last month.

“Core inflation readings will likely remain muted over coming months in response to ongoing weak demand and ample excess capacity,'' Rubeela Farooqi, chief U.S. economist at High Frequency Economics, wrote in a research report.

[Iliyah]

1. Groceries are high . .

Gas in some places is over $3.00 . .

And I can't find Lysol spray at all.

[judesedit]

2. Food prices have risen by at least 25% everywhere I go. Why is that then????

[Sherman A1]

3. Supply and Demand

People are eating at home more than the pre Covid era. Suppliers cannot easily pivot their institutional lines for restaurants, schools, workplace cafeterias and alike into consumer groceries.

[judesedit]

7. I get that, but pathetic, when so many people are hurting right now

[Sherman A1]

8. Retailer cannot charge less than they pay for the products they sell

or they go out of business, wholesalers cannot either, manufactures faced with increased costs have the same problem, things will calm down but it will be awhile before they do.

[SWBTATTReg]

4. Oh man, winning so much that it hurts! It's amazing that this POS has ...

ruined so much of this nation's economy all by himself, by his failures to swiftly and decisively act.

A worthless POS.

[progree]

5. Official BLS Report

https://www.bls.gov/news.release/ppi.nr0.htm

about Food and Energy:

Final demand goods: The index for final demand goods rose 0.8 percent in July, the third
consecutive advance. Leading the July increase, prices for final demand energy climbed 5.3 percent.
The index for final demand goods less foods and energy moved up 0.3 percent. In contrast, prices for
final demand foods declined 0.5 percent.

Product detail: Over one-third of the July advance in the index for final demand goods is attributable
to gasoline prices, which rose 10.1 percent. The indexes for diesel fuel, home heating oil, electric
power, fluid milk products, and industrial chemicals also increased. Conversely, meat prices fell 8.0
percent. The indexes for residential natural gas and carbon steel scrap also decreased.

[mahatmakanejeeves]

6. Thanks. I'm "working" today.

I'm supposed to be attending a Webex webinar, but there's no audio. I don't care.