In the United States in June, producer prices demonstrated the dynamic of growth, which turned out to be higher than preliminary forecasts regarding the rate of movement of the corresponding indicator along an upward trajectory.

The mentioned result is due to the increase in service provider margins. This factor offsets the decrease in the cost of goods for the second month in a row.

On Friday, July 12, the Bureau of Labor Statistics released statistical information according to which the producer price index in June in the United States showed an increase of 0.2% compared to the figure recorded in May. At the same time, the mentioned index grew by 2.6% year on year. It is also worth noting that this indicator reflects final demand.

On Thursday, July 11, data on the consumer price index for June was released. The core CPI gauge, which strips out food and energy prices, rose 0.1% last month in the United States compared with the result in May. Year-on-year, the corresponding figure for June increased by 3.3%. The headline consumer price index last month decreased by 0.1% compared to the May result. The dynamic of this indicator is related to being weighed down by a tumble in gasoline and broader energy costs.

Against the backdrop of the mentioned data in the United States, there is increasing expectation that the Federal Reserve will begin easing monetary policy in September, which implies cutting interest rates. Also, in the context of these expectations, an opinion has been formed that by the end of the current year, the financial regulator of the United States will have to lower borrowing costs two times.

As we have reported earlier, Goldman Sachs Asset Managers Expects Slowdown in US Economy Growth.