Washington, August 13 – The growth in U.S. producer prices slowed in July 2024, indicating further cooling of inflationary pressures. This development brings the Federal Reserve (Fed) closer to potentially lowering interest rates, possibly as soon as early next month. The news was reported by AP and RTTNews.
According to the latest data, the Producer Price Index (PPI) in the U.S. increased by just 0.1% in July compared to June, when it rose by 0.2% month-on-month. This result aligns with economists’ expectations.
Goods prices increased by 0.6% in July, the highest since February, driven primarily by a 1.9% rise in energy prices. Motor fuel and food prices also saw increases. On the other hand, service prices fell by 0.2%, marking the most significant decline since March 2023.
On a year-over-year basis, the growth rate of producer prices in July 2024 decreased to 2.2% from a revised 2.7% in June.
Economists had expected the year-over-year growth in producer prices to slow to 2.3% in July from the original 2.6% reported for June.
Core inflation, which excludes the volatile prices of food and energy, was flat on a month-over-month basis in July after rising by 0.3% in June. Year-over-year, core inflation growth slowed to 2.4% from 3% in June.
Tables: U.S. Producer Price Index (PPI) Data for July 2024
Monthly and Yearly PPI Changes
| Indicator | July 2024 | June 2024 | Change (%) |
|---|---|---|---|
| PPI Monthly Growth | +0.1% | +0.2% | N/A |
| PPI Yearly Growth | +2.2% | +2.7% | N/A |
Breakdown by Goods and Services
| Category | Monthly Change (July 2024) | Notes |
|---|---|---|
| Goods Prices | +0.6% | Highest since February; driven by energy prices |
| Energy Prices | +1.9% | Significant contributor to goods price increase |
| Service Prices | -0.2% | Largest drop since March 2023 |
Core Inflation (Excluding Food and Energy)
| Indicator | July 2024 | June 2024 | Year-over-Year Change |
|---|---|---|---|
| Core Inflation (Monthly) | 0.0% | +0.3% | N/A |
| Core Inflation (Yearly) | +2.4% | +3.0% | N/A |
