US producer inflation firming; industrial output rises - Yahoo! Maktoob News
WASHINGTON (Reuters) - U. S. producer prices increased more than expected in June as the cost of gasoline and a range of other goods rose, indicating the recent oil-driven downward spiral in prices was abating. "Today's data support the Fed chair's message that the economy can support a rate hike," said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. The Labor Department said its producer price index for final demand increased 0. 4 percent last month after rising 0. 5 percent in May. It was the second straight month of increase in producer prices and beat economists expectations for a 0. 2 percent gain. Gasoline prices increased 4. 3 percent after surging 17 percent in May. The volatile trade services component, which mostly reflects profit margins at retailers and wholesalers, rose 0. 2 percent in June after increasing 0. 6 percent in May. A key measure of underlying producer price pressures that excludes food, energy and trade services increased 0. 3 percent last month after dipping 0. 1 percent in May. Source: news.yahoo.com
