Producer Prices Up 0.6%

Washington, DC, August 14, 2007--The producer price index rose 0.6 % in July, following a 0.2% decline in June, according to the Labor Department.

The core index, which excludes food and energy costs rose 0.1%, its smallest gain in three months.

Economists had forecast an increase of 0.2% in both the PPI and the core indexes.

On a year-over-year basis producer prices are up 4% from July 2006, compared with a 3.3% gain in the 12 months ended in June.

Food prices fell 0.1%, after falling 0.8% in June.

Fuel prices rose 2.5% in July after declining 1.1% the prior month. The price of gasoline rose 3.2%, and natural gas costs rose 2.7%.

Prices for raw materials, or crude goods, rose 1.2, following a 0.3 % increase in June.

Prices for capital equipment rose 0.1% last month after a 0.3% increase in June. Computer prices fell 3.3 %.