WASHINGTON, Aug 17 (Reuters): US producer prices rose marginally in July as a decline in the cost of energy goods offset higher food prices, pointing to a moderation of inflation pressures at the factory gate.
The Labor Department said on Friday its producer price index for final demand edged up 0.1 per cent after a 0.4 per cent rise in June. The increase was in line with economists' expectations.
Producer inflation data has been volatile since the government revamped the PPI series at the start of the year to include services and construction.
Swings in prices received for trade services, a gauge of margins for retailers and wholesalers, have made it hard to see a clear trend in producer prices.
Overall, inflation has been rising in recent months, a fact acknowledged by the Federal Reserve at its July policy meeting. The U.S. central bank, which had repeatedly warned that price pressures were too low, said the likelihood of inflation running persistently below its 2 per cent target had diminished somewhat.
In the 12 months through July, producer prices increased 1.7 per cent after rising by 1.9 per cent in the year to June.
Last month, prices at the factory gate were held back by declining energy prices. Gasoline prices fell 2.1 per cent last month after rising 6.4 per cent in June. Food prices increased 0.4 per cent in July.
Prices received for services at the final demand level nudged up 0.1 per cent after rising 0.3 per cent in the prior month.
Producer prices excluding food and energy gained 0.2 per cent in July after gaining 0.2 per cent in June. In the 12 months through June, the core PPI for final demand rose 1.6 per cent. It had increased 1.8 per cent in June.
Producer prices excluding food, energy and trade services increased 0.2 per cent after June's 0.2 per cent gain.
