Producer Prices Confirms Inflation is Sticky

11 August 2023

Producer prices rose by 0.3% MoM in July, surpassing expectations and marking the most significant jump since January 2023. This pushed the YoY rise to 0.8%. The increase was mainly driven by a 0.5% surge in final demand services, particularly in portfolio management, which saw a 7.6% price hike. Final demand goods only saw a slight increase of 0.1%, with meats seeing a notable 5.0% rise. Despite these hikes, diesel fuel prices dropped by 7.1%. The data suggests a more persistent inflation than anticipated.

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