After Three Month Decline, U.S. Producer Prices Edge Up in June

As higher food prices offset drops in energy costs, U.S. producer prices inched higher in June, ending a three-month decline, government data showed Friday.

The Labor Department said its June producer price index rose 0.1% from May, when PPI tumbled 1% due to a steep fall in energy prices.

In June, the decline in energy prices was more muted, at 0.9%, while food prices rose 0.5%.

So-called "core" PPI, excluding food and energy prices, increased 0.2% for the fourth straight month.

On a year-over-year basis, producer prices were up 0.7%.

"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% for 2012.

Core inflation, excluding food and energy prices, was seen as roughly stable, at 1.7% to 2%.

Copyright Agence France-Presse, 2012