- by New Deal democrat
Producer prices for final demand (blue) rose 0.1% in July, while upstream raw commodity prices (red) rose 0.7%, close to their highest monthly increases in the past two years:
In the larger pre-pandemic scheme of things, the one month rise in commodity prices is not a matter of concern at this point.
On a YoY basis, final demand producer prices are up 2.2%, while raw commodity prices are up 1.5%:
Like all other prices except for imputed shelter costs, this is well within the Fed’s target range. We’ll see how this pans out for consumer prices tomorrow.
