For the first time since March, the Producer Price Index rose, gaining 0.2 percent in July. The increase is helping to offset fears of deflation within the US economy which continues to struggle. Overall, commodity prices remain above last year’s levels, leaving producers to deal with tighter margins as they attempt to attract more consumer spending.
“We’re going to avoid an outright bout of deflation,” said Russell Price, a senior economist at Ameriprise Financial Inc. in Detroit. Stable prices will continue “helping the Federal Reserve maintain a key focus on growth.”
Source: Bloomberg