Producer prices in the United States surged more than anticipated in July, according to data released Thursday by the Labor Department.
The department reported that its Producer Price Index (PPI) for final demand climbed 0.9% last month, snapping back from a flat reading in June. Analysts had only expected a modest 0.2% gain.
On an annual basis, producer price growth accelerated sharply, hitting 3.3% in July compared with an upwardly revised 2.4% in June. Economists had forecast a smaller increase to 2.5% from the 2.3% previously estimated for the prior month.
In a separate release, the Labor Department said initial applications for U.S. unemployment benefits unexpectedly fell during the week ending August 9. First-time jobless claims dropped by 3,000 to 224,000, compared with the previous week’s revised total of 227,000. Forecasts had pointed to a slight increase to 228,000 from the 226,000 initially reported.
The four-week moving average for claims, which smooths out short-term fluctuations, rose to 221,750 — up 750 from the prior week’s revised average of 221,000.
Later in the day, at 11 a.m. ET, the Treasury Department will unveil details of its upcoming 20-year bond auction. Richmond Federal Reserve President Thomas Barkin is also scheduled to join a virtual discussion hosted by the National Association for Business Economics at 2 p.m. ET.
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