NEW YORK (Reuters) - The Philadelphia Federal Reserve said on Tuesday its measures on business costs among services firms in the U.S. Mid-Atlantic region plunged in June, reinforcing the view that domestic inflation would struggle to reach the Fed’s 2-percent goal.
The gauges for companies’ input prices and for prices for their own goods and services dropped.
The prices paid index fell by 9 points to 7.9, the lowest level since December 2014 when it was 2.4, Philadelphia Fed’s data showed. Its prices received index tumbled 14 points to 3.3, which was the lowest since March 2015 when it was 1.7 points.
On the other hand, the Philadelphia Fed’s index on non-manufacturing business conditions across the Mid-Atlantic region improved to 33.6 from 25.6 in May.
Reporting by Richard Leong; Editing by Chizu Nomiyama