Alex Wong/Getty The producer price index picked up by 3.4% from a year ago in June. This data will work its way into consumer price inflation and add to it. This has very hawkish implications for the Federal Reserve and interest rates. “In June, most of the rise in the index for final demand is attributable to a 0.4-percent advance in prices for final demand services,” said the Bureau of Labor Statistics in the release of its Producer Price Index data.