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In the US, the Producer Price Index rose in June 0.3%. Analyst at Wells Fargo, point out that core prices continue to climb higher as producers are facing rising input costs.

Key Quotes:  

“Inflation continues to gradually climb higher, with the producer price index advancing 0.3 percent in June. Gains were broad based, with food being the only major category to see prices slip.”

“Excluding food, energy and trade services (measured by margins), prices increased 0.3 percent. That pushed the yearago rate of our preferred measure of core PPI back to 2.7 percent, which is up from 2.1 percent last June.”

“While higher energy costs have led the pickup, non-energy materials for manufacturing and construction are up 6.5 percent since last June. Service inputs are up, led by fuel and labor shortages driving transport costs higher.”