PPI Hotter Than Expected in June

The Producer Price Index – a measure of inflation at the producer level – rose by +0.4% in June. The June PPI was above the consensus estimate for a rise of +0.2% and also well above the May reading of -0.2%. On a year-over-year basis, PPI was up +1.9%, which was slightly below the last month's reading of +2.0% (April: +2.1%). Prior PPI readings…Apr: +0.6%, Mar: +0.5%, Feb: +0.1%, Jan 2014: +0.2%, Dec: +0.1% Nov: -0.1%, Oct: -0.2%, Sept: -0.1%, Aug: +0.3% July: +0.0%, June: +0.8%, May: +0.5% Apr: -0.7%, Mar: -0.6%, Feb: +0.7, Jan 2013: +0.2%. The so-called “core rate” (ex-Food & Energy) also rose, gaining +0.2%. in June This was in line with the consensus estimate of +0.2% and above last month's -0.1% Prior Core Rate Readings: April” +0.5%, Mar: +0.6%, Feb: -0.2%, Jan 2014: +0.2%, Dec: 0.0%, Nov: +0.1%, Oct: +0.2%, Sept: +0.1%, Aug: 0.0%, July: +0.1%, June: +0.2%, May: +0.1%, Apr: +0.1%, Mar: +0.2%, Feb: +0.2%, Jan 2013: +0.2. In sum, this report furthers the concern that there is inflation percolating in the economic pipeline.