Supply Chain Monitor: August PPI
The Producer Price Index data for August arrived roughly as expected, with continued softening in commodities prices and a rise in input costs for services.
The Producer Price Index data for August arrived roughly as expected, with continued softening in commodities prices and a rise in input costs for services.
The index for total industrial production fell by 0.6% month-over-month in July for a year-over-year decline of 0.2%. This follows a series of weak ISM reports, which would seem to suggest an industrial slowdown.
Overall, the July PPI report shows an increasingly stable and muted inflation picture.
The June G.17 Industrial Production report outperformed expectations.
Overall, the June PPI reading saw continued normalization towards pre-pandemic rates of input cost growth. PPI for All Commodities increased by 0.1% month over month in June, for a 0.6% year over year increase.