Commentary notes some stubborn stickiness of core inflation globally

Manufacturing output prices—average charges levied for goods leaving the factory gate—fell worldwide for a third month running in July. However, the rate of decline moderated slightly, he wrote in a recent commentary.

While producers' input costs fell for a third straight month in July, the fall was smaller than that recorded in June.

Although the euro zone saw output prices fall at an increased pace, rates were unchanged in the United States, the United Kingdom and Japan, and the rate of inflation picked up in Canada. The rate of deflation meanwhile eased in mainland China, he wrote.

While raw material costs, energy and demand pressures are all running below their long run averages, wage growth is acting as an increasingly elevated driver of higher selling prices, running at over six-times the long-run average in terms of its impact on prices worldwide, the commentary observed.

Of the 31 economies for which S&P Global manufacturing PMI data are available, selling prices fell in 19 cases during July, albeit in some instances only marginally, and rose in only 11.

The steepest declines were generally seen in Europe, with Austria recording the sharpest decline, though sharp falls were recorded in Brazil, Taiwan and Vietnam as well.

Notable declines were also witnessed in mainland China and the United Kingdom, albeit the former reported a slowing rate of deflation and the latter only a marginal fall at a rate unchanged from June.

US prices were largely unchanged for a second month in a row, but prices in Canada rose at the fastest rate since April.

Output prices meanwhile rose at steep and increased rates in Turkey, Russia and Japan, and a strong rate of inflation was also seen in India, the commentary added.

ALCHEMPro News Desk (DS)