WASHINGTON. — US producer prices inched higher in June, ending a three-month decline, as higher food prices offset drops in energy costs, government data showed last week. The Labour Department said its June producer price index rose 0,1 percent from May, when PPI tumbled 1,0 percent due to a steep fall in energy prices.

In June, the decline in energy prices was more muted, at 0,9 percent, while food prices rose 0,5 percent.
So-called “core” PPI, excluding food and energy prices, increased 0,2 percent for the fourth straight month.

On a year-over-year basis, producer prices were up 0,7 percent. “Inflation is not a concern and there hasn’t been — a bit surprisingly — much talk about deflation either,” said Dick Green at Briefing.com.

The Federal Reserve, in an update of economic forecasts in late June, said inflationary pressures in the modestly growing economy were weaker than previously thought, forecasting a range of 1,2 to 1,7 percent for 2012. — AFP.