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U.S. producer prices continue rising in June

Xinhua, July 16, 2015 Adjust font size:

The U.S. producer prices continued to rise last month, a sign that inflation is slowly building up.

The Producer Price Index (PPI), a gauge of inflation at the factory gate, rose 0.4 percent in June, following a 0.5 percent increase in May, said the Labor Department Wednesday. On year-on- year basis, the PPI declined 0.7 percent, the fifth straight 12- month decrease.

Nearly two-thirds of the increase in PPI can be attributed to prices for final demand goods, which rose 0.7 percent in June, said the Labor Department. The index for final demand services advanced 0.3 percent.

Excluding the volatile food and energy sectors, the so-called " core" PPI went up 0.3 percent, compared with a 0.1 percent increase in May.

The low inflation pressure is a key factor for the U.S. monetary policy maker to remain hesitant on raising the ultra-low interest rate. U.S. Federal Reserve Chairwoman Janet Yellen said Wednesday that the central bank believed transitory factors have played a major role in holding down inflation level.

As the effects of transitory factors dissipate and as the labor market improves further, the Fed expects inflation will move gradually toward its objective over the medium term, said Yellen. Endite