The gain in U.S. wholesale prices reflected higher food and services costs, signaling modest inflation, a Labor Department report showed Thursday in Washington.
HIGHLIGHTS OF PRODUCER PRICES (JUNE)
Almost 80 percent of the increase in wholesale prices was due to a 0.2 percent gain in services as goods costs edged up 0.1 percent. A big factor behind the pickup in services costs was a 4 percent rise in prices for securities brokerage and investment advice.
Otherwise, price pressures in the production pipeline remain contained, keeping broader inflation below the Federal Reserve’s goal and helping explain why policy makers plan to raise interest rates only gradually.
The PPI excluding food, energy, and trade services — a measure some economists prefer because it strips out the most volatile components — increased 2 percent from June 2016, also indicating inflation is taking time to pick up.