Higher Energy Costs Increased Producer Prices By 6pct in July

A leap in energy prices have caused producer prices to increase more than many had expected.

Producer prices continued to rise even though food prices fell and the producer price index fell 0.2 percent in May.

Gasoline costs increased 3.2% last month having fallen 3.9% last months.

Energy analyst Sam Kirtley of The Uranium Stocks Newsletter thinks this is another reason why the world needs to go nuclear; “Small as this example may seem, energy prices affect every area of the economy. Fossil fuels are unstable and energy price swings can be avoiding by going nuclear as nuclear power has stable costs.”

Nigel Gault, an economist with Global Insight said: “Over all, today’s P.P.I. report was benign,”
“That means that the Fed will have room to cut interest rates should the economy stumble due to the fall-out from the financial market turmoil.”

Do you think that energy prices will continue to increase?

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