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No deflation at the producer level




The Producer Price Index fell by 0.5% in June, but that was mainly due to lower energy prices. Over the past year it is still up 2.7%. The core PPI is up 1% over the past year, and it has risen at a 2% annualized pace over the past six months, which is a definite pickup from the zero increase that occurred over the last six months of 2009.

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