Inflation Figures Give Conflicting Signals

Washington, DC, July 17, 2007--The Producer Price Index for Finished Goods fell 0.2 percent in June, the U.S. Department of Labor reported today.

The decline, the first since January,  followed advances of 0.9 percent in May and 0.7 percent in April.

Economists had expected that the index would rise .2 percent at the wholesale level.

However, the core producer price index rose .3 percent when volatile energy and food prices were factored out. Energy prices fell 1.1 percent and food prices dropped .8 percent.

The PPI measures goods in production, not at the retail level.