PPI falls in June; “disinflation” until capacity utilised

10 July 2020

 

Summary: Prices received by producers fall on average; decrease more than expected; driven by lower services prices; core PPI near zero; excess capacity behind “disinflation”.   Around the end of 2018, the annual inflation rate of the US producer price index (PPI) began a downtrend which then continued through 2019. Months in which prices received by producers increased suggested the trend may have been coming to an end, only for...

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