In the US, the Producer Price Index (PPI) rose in June above expectations but according to analysts from Wells Fargo, it continues to signal fairly modest inflation. “The PPI for final demand rose 0.5 percent in June, the strongest increase in more than a year. A 4.1 percent gain in energy prices underpinned the increase, but food (0.9 percent) and trade services (0.7 percent) also provided a lift.” “Although the PPI has been running below the PCE deflator, the increase suggests a pickup for the more widely watched measure." “While over the past three months the PPI has increased at the strongest pace since 2011, it continues to signal fairly modest inflation. Our preferred measure of core PPI, which excludes food, energy and trade services (measured by margins), rose 0.3 percent in June, but is up just 0.9 percent over the past year.”