Market consensus predicted an increase of at least 0.4% on a monthly basis.
The annual PPI also disappointed market forecasts, falling 0.8% from the expected 0.2% drop in June, the US Department of Labor said on Friday.
Core inflation, which removes volatility in food and energy prices, fell 0.3% in June amid sluggish demand due to the COVID-19 pandemic. Core annual inflation accelerated only 0.1% against the 0.4% expected after the 0.3% increase in May.
Gold prices hit daily highs in response to data as the August Comex gold futures contract traded at $ 1,815.50, up 0.65% on the day .
Market players pay particular attention to the PPI as an indicator of wholesale inflation. It is considered a leading indicator because producers traditionally pass on higher prices to their customers.
The Federal Reserve also constantly monitors inflationary pressures, particularly when it makes decisions about future rate movements.
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