CashNews.co
US wholesale inflation slowed more than expected in July, in the latest sign that price pressures are easing in the world’s largest economy as the Federal Reserve deliberates over when to cut interest rates from their 23-year-high.
The producer price index, a leading indicator of consumer price inflation, rose 0.1 per cent in July from a month earlier, the labour department said on Tuesday. Economists had expected the figure to remain at 0.2 per cent, the same as in June.
The annualised rate slowed to 2.2 per cent last month, from an upwardly revised 2.7 per cent in June. Despite the revision, July’s result was still below economists’ forecast of 2.3 per cent.
The “core” PPI reading, which strips out volatile food and energy costs, slowed more than forecast on a monthly and annual basis.
The PPI figures come one day before the release of important consumer price index data, which Fed officials will also factor into their rate cut decision.