Wholesale prices overall rose more than expected in June, according to the Labor Department’s Bureau of Labor Statistics. Goods inputs in the supply chain, meanwhile, mostly fell from May levels.
The producer price index (PPI), which measures pipeline costs for raw, intermediate and finished goods, rose 0.2% in June from the previous month. Economists surveyed by Dow Jones were expecting a 0.1% increase for the index.
On an annual basis, PPI rose 2.6%, up from an upwardly revised 2.4% increase in May.
Three of the four supply-chain stages reported wholesale price decreases in goods in June from the previous month.
Stage 4 goods inputs, measuring the products purchased by industries primarily producing output sold to final demand, such as RV manufacturers, fell 0.2% in June from a revised 0.3% decrease in May. Overall, Stage 4 intermediate demand rose 2.3% in June, the largest monthly increase since August 2023.
Goods inputs for Stage 3 intermediate demand, measuring suppliers to Stage 4 producers such as RV manufacturers, fell 0.1% in June after a revised 1.3% decrease in May. Overall, year-over-year Stage 3 demand rose 1.2%, the largest year-over-year increase since February 2023.
Goods inputs for Stage 2 intermediate demand, measuring suppliers to Stage 3 suppliers, rose 1.6% in June after a revised 1.2% decrease in May. The initial May report showed a 2.4% decrease in goods inputs. Overall, Stage 2 intermediate demand rose 3.7% in May, the largest increase since January 2023.
Finally, goods inputs for Stage 1 demand fell 0.3% after a 1.6% decrease in May. Overall, Stage 1 intermediate demand rose 1% in April, the largest year-over-year increase since February 2023.
