The producer price index for finished goods ticked 0.1% higher last month following a 1.0% May decline. Consensus expectations were for a 0.4% decline. Despite the gain, the PPI rose just 0.8% during the last year, the weakest since October 2009. The PPI less food & energy rose an expected 0.2% for the fourth consecutive month. During the twelve months core prices rose 2.6%, the least since last July.

A 0.5% increase (2.8% y/y) in finished food prices provided the lift to last month's PPI. Gains were not, however, broad-based amongst commodity groupings. Energy prices fell 0.9% (-5.5% y/y) reflecting an 8.3% decline (-5.2% y/y) in home heating oil prices and a 2.1% drop (-1.3% y/y) in electric power costs. Offsetting these declines was a 1.9% rise (-4.8% y/y) in gasoline prices. (Not seasonally adjusted gasoline prices fell 4.8% m/m.)

Finished consumer goods prices were unchanged (0.3% y/y). Less food & energy, consumer goods prices rose 0.3% (3.3% y/y). Within the components, men's apparel prices rose 5.2% y/y while women's clothing costs increased just 0.5% y/y. Household appliance prices rose 5.0% since June of 2011, furniture prices gained 2.9% y/y and passenger car prices increased 0.6 % y/y. Capital equipment prices gained just 0.2% last month and by 1.9% year-to-year.

Intermediate goods prices fell 0.5% (-1.2% y/y). Energy costs slipped 0.2% last month and by 5.4% y/y but food prices increased 1.0% (2.5% y/y). Core-intermediate prices fell 0.7% and slipped 0.3% y/y. Crude materials prices fell 3.6% last month and were down 11.6% year-to-year. Energy prices declined 5.1% (-20.5% y/y) while food prices were down 1.6% (-3.5% y/y). Prices less food & energy dropped 4.0% and were down 9.4% over the prior twelve months.

The PPI data are contained in Haver's USECON database with further detail in PPI and PPIR. The expectations figures are available in the AS1REPNA database.