Core PPI up 0.3% in June 2007

Posted by Kirk Lindstrom Jul 17, 2007

If you wanted the FOMC to lower the Fed Funds Rate, then 0.3% core PPI inflation for June 2007 is not good news. The US Federal Reserve Open Market Committee (FOMC) continues to be right keeping rates at 5.25% to contain inflation

PPI stands for Producer Price Index, a measure of inflation.

The good news is energy prices have fallen. Gasoline prices in California fell about 8% recently despite higher crude oil prices. (Crude Oil Price Charts here)

• U.S. June PPI capital equipment prices up 0.3%
• U.S. June PPI intermediate goods prices up 0.5%
• U.S. June PPI crude goods prices rise 0.3%
• U.S. June PPI energy prices fall 1.1%
• U.S. June PPI foods prices fall 0.8%
• U.S. June core intermediate PPI slowest rise in 3 years
• U.S. PPI up 3.3% in past year
• U.S. June core PPI rises 0.3% vs. 0.2% gain expected
• U.S. June PPI falls 0.2% vs. 0.2% gain expected

June PPI annualized: 0.3% per month x 12 months = 3.6%

June 2007 CPI data are scheduled to be released on July 18, 2007, at 8:30 am Eastern Time.

Discuss these results in our US Economy Discussion Forum.

Kirk Lindstrom: DISCLAIMER: Answers & my words are general in nature, are not meant as specific investment advice, and do not necessarily represent the opinion of anyone but Kirk. Individuals should consult with their own advisors for specific investment advice. In addition, past performance does not guarantee future results.