The Producer Price Index remained unchanged on a monthly basis in July 2018, against expectations for 0.2% growth. Excluding the volatile food and energy, the producer prices rose by 0.1% in July. A key gauge of underlying producer price pressures that excludes food, energy and trade services rose 0.3 percent last month. The so-called core PPI rose by the same margin in June.
Rising oil prices and strong demand from US consumers and companies have boosted the annual index. On an annual basis, prices have risen by 3.3% in July.
The leading cost factor measures the amounts paid by the last consumer of the good or service, including consumers, other companies and the government.
The prices of processed goods for intermediate demand increased by 6.8% in July on an annual basis, while the unprocessed goods rose by 8.2%.
The accumulation of pressures on producer prices may lead to further consumer price hikes.
The Labor Department will provide data on the consumer price index for July on Friday. The inflation indicator signaled a strengthening in recent months, rising by 2.9% in June on an annual basis.