WASHINGTON — Wholesale prices on domestically produced women’s and girls’ apparel rose a seasonally adjusted 0.3 percent in July, but were down 0.1 percent compared with a year ago, the Labor Department said Tuesday in its Producer Price Index.
Soaring energy costs drove up wholesale prices across the economy by 0.1 percent in July, reflecting the smallest increase in five months. Outside volatile food and energy costs, “core” wholesale prices fell by 0.3 percent in July after rising 0.2 percent in May and June.
“Producer prices for finished consumer goods, less food and energy, indicate where core consumer prices are headed,” wrote Peter Morici, a professor at the University of Maryland’s Robert H. Smith School of Business, in a report. “The 0.3 percent decrease in core producer prices indicates inflation is beginning to moderate as the Federal Reserve Open Market Committee anticipated at its Aug. 8 meeting.”
The Federal Reserve Open Market Committee halted a series of 17 interest rate hikes for the first time in two years when it met last week, saying it would keep its target for federal funds at 5.25 percent.
“Economic growth has moderated from its quite strong pace earlier this year, partly reflecting a gradual cooling of the housing market and the lagged effects of increases in interest rates and energy prices,” the Fed committee said in a statement.
The Consumer Price Index will be released today, giving a broader indication of inflationary trends. This is particularly true in apparel, where less than 10 percent of goods sold at retail are manufactured domestically. The CPI takes into account all retail sales, including imported merchandise.
The PPI showed that within the women’s and girls’ apparel category, prices on dresses fell 0.1 percent last month but were up 1.3 percent against a year ago, while prices on jeans and slacks edged up 0.7 percent in July and increased 0.9 percent over July 2005. Prices for knit shirts and blouses were flat last month and fell 0.1 percent compared with last year, while prices for woven shirts and blouses were flat in July and increased 0.5 percent against a year ago.
In the textile sector, prices on synthetic fibers rose 0.6 percent in July and were 5 percent above the year-ago period, while prices on yarns rose 0.4 percent for the month and 2 percent year over year. Prices on greige fabrics fell 0.2 percent in July but increased 5 percent against a year ago.