Producer prices rise more than forecast

The producer price index (PPI) for final demand rose by 0.5% in June, according to the Labour Department.

Economists had forecast an increase by 0.3% month-on-month, according to Bloomberg.

The jump in prices was led by the index for final demand services, notably those related to securities brokerage and dealing, which increased 7.7%. Prices rose across several other categories, from eye glasses to car fuels.

The index for final demand goods jumped 0.8%, the most since May 2015, led by a 9.9% jump in the gas-price index.

Core PPI, which excludes volatile food and energy costs, rose 0.4% month-on-month (0.1% expected.)

Compared to the same time a year ago, PPI for final demand rose 0.3% (0% expected), and 1.3% (1% forecast.)

Producer prices are used as a forward-looking indicator of consumer-price inflation. The idea is that if wholesale prices are rising, retailers would likely pass these costs on to regular buyers.

NOW WATCH: CLINTON: Trump poses a threat to US democracy

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.