Wholesale prices shoot up near-record 11.3% in June on surge in energy costs

[mahatmakanejeeves]

Source: CNBC

ECONOMY

Wholesale prices shoot up near-record 11.3% in June on surge in energy costs

PUBLISHED THU, JUL 14 2022 8:51 AM EDT * UPDATED 10 MIN AGO

Jeff Cox
@JEFF.COX.7528
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KEY POINTS
-- The producer price index rose 11.3% from a year ago in June, near the record 11.6% posted in March.
-- Excluding food, energy and trade, core PPI was up 6.4%. The monthly gain of 0.3% was below expectations.
-- Jobless claims jumped to 244,000 last week, the highest level since November 2021.

Inflation hit hard at the wholesale level in June, as producer prices surged a near-record amount from a year ago due to a big jump in energy costs, the Bureau of Labor Statistics reported Thursday. ... The producer price index, a measure of the prices received for final demand products, increased 11.3% from a year ago, the highest reading since the record 11.6% in March.

Of that gain, almost 90% came from a 10% increase in final demand energy costs as prices for oil, natural gas and other products soared during the month. ... Excluding energy, as well as food and trade service prices, so-called core PPI rose 6.4% on a 12-month basis, a deceleration from the 6.8% gain in May.

On a monthly basis, the core measure increased just 0.3%, below the 0.5% Dow Jones estimate. Headline PPI rose 1.1% on the month, higher than the 0.8% estimate. ... The release comes one day after the BLS reported that the consumer price index, which measures final-sale prices in the marketplace, surged 9.1%, the highest 12-month gain since November 1981.

{snip}

Read more: https://www.cnbc.com/2022/07/14/producer-price-index-june-2022-gain-11point3percent-on-surge-in-energy-costs.html

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This is worse than expected.

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U.S. Stock Futures Down Ahead Of Bank Earnings, Producer Price Index

https://www.benzinga.com/news/earnings/22/07/28061530/u-s-stock-futures-down-ahead-of-big-bank-earnings-producer-price-index

by Lisa Levin, Benzinga Editor
July 14, 2022 6:15 AM 3 min read

Pre-open movers

U.S. stock futures traded lower in early pre-market trade on Thursday after the Dow Jones dropped more than 200 points in the previous session. Investors are awaiting earnings results from Morgan Stanley MS and JPMorgan Chase & Co. JPM.

The Producer Price Index for June is scheduled for release at 8:30 a.m. ET. Producer prices are projected to rise 0.8% on the month in June to match May's growth. The annual rate, however, is seen easing to 10.4% from 10.8%. Data on initial jobless claims for the latest week will be released at 8:30 a.m. ET.{snip}

[mahatmakanejeeves]

1. From the source, the U.S. Bureau of Labor Statistics:

PPI for final demand advances 1.1% in June; goods rise 2.4%, services increase 0.4%

Economic News Release USDL 22-1472

Producer Price Index News Release summary
Transmission of material in this release is embargoed until 8:30 a.m. (ET), Thursday, July 14, 2022

Technical information: [phone] * [e-mail] * www.bls.gov/ppi
Media contact: [phone] * [e-mail]


PRODUCER PRICE INDEXES - JUNE 2022


The Producer Price Index for final demand increased 1.1 percent in June, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This rise followed advances of 0.9 percent in May and 0.4 percent in April. (See table A.) On an unadjusted basis, final demand prices moved up 11.3 percent for the 12 months ended in June, the largest increase since a record 11.6-percent jump in March 2022.

In June, three-fourths of the advance in the index for final demand was due to a 2.4-percent rise in prices for final demand goods. The index for final demand services increased 0.4 percent.

Prices for final demand less foods, energy, and trade services moved up 0.3 percent in June after advancing 0.4 percent in both May and April. For the 12 months ended in June, the index for final demand less foods, energy, and trade services rose 6.4 percent.

Final Demand

Final demand goods: The index for final demand goods moved up 2.4 percent in June, the sixth consecutive rise. Nearly 90 percent of the June increase can be traced to a 10.0-percent jump in prices for final demand energy. The indexes for final demand goods less foods and energy and for final demand foods advanced 0.5 percent and 0.1 percent, respectively.

Product detail: Over half of the June increase in the index for final demand goods is attributable to gasoline prices, which jumped 18.5 percent. The indexes for diesel fuel, electric power, residential natural gas, motor vehicles and equipment, and processed young chickens also moved higher. In contrast, prices for chicken eggs dropped 30.2 percent. The indexes for iron and steel scrap and for jet fuel also decreased. (See table 2.)

Final demand services: The index for final demand services rose 0.4 percent in June after climbing 0.6 percent in May. Two-thirds of the broad-based advance in June can be traced to a 0.8-percent increase in margins for final demand trade services. (Trade indexes measure changes in margins received by wholesalers and retailers.) Prices for final demand services less trade, transportation, and warehousing and for final demand transportation and warehousing services also moved higher, 0.1 percent and 0.8 percent, respectively.

Product detail: Over 30 percent of the June advance in the index for final demand services can be traced to margins for food and alcohol retailing, which rose 3.8 percent. The indexes for machinery and equipment wholesaling, outpatient care (partial), transportation of passengers (partial), guestroom rental, and hospital inpatient care also increased. Conversely, prices for portfolio management declined 2.7 percent. The indexes for automobile retailing (partial) and for long-distance motor carrying also moved lower.

{snip a few tables and some more paragraphs}

________________
The Producer Price Index for July 2022 is scheduled to be released on Thursday, August 11, 2022, at 8:30 a.m. (ET).

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Information from these releases will be made available to sensory impaired individuals upon request. Voice phone: [phone], Federal Relay Services: 1-800-877-8339.

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[mahatmakanejeeves]

3. (On an annual basis) Producer prices jump over 11% in June, more than expected

Producer prices jump over 11% in June, more than expected

Jul. 14, 2022 8:31 AM ET
By: Liz Kiesche, SA News Editor

-- Producer Price Index: +1.1% vs. +0.8% consensus and +0.9% prior (revised from +0.8%).
-- +11.3% Y/Y vs. +[10.4]% consensus and +10.9% prior (revised from +10.8%). That marks the largest rise since it hit a record of 11.6% in March 2022.
-- Core PPI: +0.4% vs. +0.5% consensus and +0.6% prior (revised from +0.5%).
-- +8.2% Y/Y vs. +8.1% consensus and +8.3% prior.
-- The index for final demand goods rose 2.4% in June, the sixth straight increase. Almost 90% of that increase can be traced to a 10.0% increase in prices for final demand energy.
-- On Wednesday, the consumer price index surged 9.1% in June at its hottest rate in over 40 years

{snip}

[Marthe48]

4. there is no relief

any store you go to, prices are jacked up the same amount. Gas is lower all around us, but remains about 4.89/gal in my town.

My solution is to hold off buying anything I can wait on, avoiding driving.

odot started a paving project in May, and got to my area yesterday, so even more disincentive to drive anywhere.

I probably have a black cloud over my head.

[The Mouth]

5. We need CHEAP gasoline and CHEAP electrical power

and we need them NOW.

$2 a gallon gas or it's Hello Trump 2024.

Expensive gas and diesel drives inflation.

Inflation got us Reagan.

Drill, Frack, purchase, pipe, shitcan anything resembling any impediment to getting every pump going, every lease drilled and every tanker truck full and flying to the gas stations.

[Quixote1818]

6. This is for June. Gas prices are dropping pretty fast in July. They are below $4 a gallon in NM now

nt