The Labor Department reported that the producer price index for final demand, which measures the prices that producers pay for goods and services, increased by a seasonally adjusted (+0.1%) in July, following (+0.2%) reading in June. The index for final demand goods increased (+0.6%), the largest advance since February ’24. Nearly 60 percent of the increase was attributed to a (+1.9%) rise in final demand energy. The index for final demand services decreased (-0.2%) with most of the decline attributable to a (-1.3%) drop in margins for final demand trade services. Excluding food, energy and trade services, the core PPI increased (+0.3%), following an upwardly revised (+0.1%) in June. Year over year the headline PPI increased (+ 2.2%), a significant improvement from the (+2.7%) recorded in June. Core PPI inflation moved up (+3.3%) year over year from an upwardly revised (+3.2%) the previous month.

The Labor Department reported the consumer price index increased (+0.2%) this followed a (-0.1%) decline in June. The all items index has increased (+2.9%) over the last 12 months, the lowest reading since March 2021. Nearly 90% of the monthly increase in the all items index was attributed to the shelter index which increased (+0.4%) in July after increasing (+0.2%). The energy index reported flat after two consecutive months of decline. The food index increased (+0.2%), while the food away from home index rose (+0.1%). Core CPI inflation which excludes food and energy increased (+0.2%) in July, after rising (+0.1%) in June. The annual rate of core CPI inflation increased (+3.2%) as compared to (+3.3%) the previous month, this was the smallest 12-month increase since April 2021. Indexes with significant increases over the last year include motor vehicle insurance (+18.6%), shelter (+5.1%), medical care (+3.2%), personal care (+3.4%), and recreation (+1.4%).

The Commerce Department reported advance U.S. retail and food services sales increased to $709.7 billion in July, a (+1.0%) jump, this follows a revised decrease of (-0.2%) instead of (0.0%) for June. Retail sales were up (+2.7%) year over year. Total sales for May 2024 through July 2024 were up (+2.4%) year over year. Retail sales are mostly goods and are not adjusted for inflation. Excluding sales at auto dealerships and gas stations, sales were up (+0.4%). Sales for auto dealers and parts increased (+3.6%), while miscellaneous retailers saw a (-2.5%) drop. Auto dealers (+4.0%) led the way in sales increase. Restaurants, the only services category increased (+0.3%). Core retail sales, a measurement that excludes spending on autos, gasoline, building materials, and food services rose (+0.3%) in July and follows a (+0.9%) reading the previous month.